Q8: Consider as a sensitivity that if the total market in the CompuTech market area had experienced a shrinking in units during the year (of 25%) should the Martins be concerned? Explain.

By 2023 the Martins are projecting considerable improvement in their business. Using the following accounts prepare the Income Statement for the period ending December 31, 2023.

RM Purchases: $406,000

Sales Salaries: 80,000

Travel: 5,000

Advertising: 10,000

Depreciation: 80,000

Revenues: 700,000

Admin Salaries: 60,000

Office Leasing: 10,000

Finance Costs: 30,000

Income Taxes: 42,000