The adjusted trial balance for China Tea company at December 31, 2018, is presented below:

	Debit	Credit
Cash	12,500
Account receivable	170,000
Prepaid rent	7,000
Inventory	45,000
Equipment	500,000
Accumulated depreciation - equipment		145,000
Accounts payable		50,000
Notes payable - due in three months		50,000
Salaries payable		6,000
Interest payable		3,000
Common stock		300,000
Retained earnings		94,000
Sales revenue		600,000
Cost of goods sold	280,000
Salaries expense	140,000
Rent expense	35,000
Depreciation expense	50,000
Interest expense	4,000
Advertising expense	4,500
Totals	1,248,000	1,248,000

Required:

Prepare an income statement for China Tea Company for the year ended December 31, 2018.

CHINA TEA COMPANY

Income Statement

For the Year Ended December 31, 2018