Stephanie Ram Corporation's Income Statement for the year ended March 31, 2016, and its Comparative Balance Sheets as of March 31, 2016 and 2015 are as follows: Stephanie Ram Corporation Income Statement For the Year Ended March 31, 2016 Sales Cost of goods sold Gross margin Operating expenses: $1,917,500 1,429,300 $488,200 Salaries expense Depreciation expense $121,000 48,800 All other operating expense 274,000 Total operating expense 443,800 Income from operations 44,400 Other income/(expenses): Gain on sale of equipment $9,000 Interest expense (23,200) (14,200) Income before income taxes $30,200 Income taxes expense 4,200 Net income $26,000