Three individuals organized Pest Away Corporation on January 1 to provide insect extermination services. The company paid

dividends of $10,000 during the year. At the end of the first year of operations, the following income statement was prepared:

1- If salaries and wages were to double, how much net income would the company report?

2- If the company paid $20,000 of its advertising expense during the current year, what amount is owed for advertising at the end of the year?

Three individuals organized Pest Away Corporation on January 1 to provide insect extermination services. The company paid dividends of $10,000 during the year. At the end of the first year of operations, the following income statement was prepared