UDEN SUPPLY COMPANY Comparative Income Statements Years Ended December 20X1, 20X2, and 20X3 (Thousands) 20X1 20X2 Audited Audited 20X3 Audited 20X4 Expected Sales commissions Sales Cost of goods sold Gross profit Advertising 12,300 13,100 13,900 8,490 9,050 9,620 3,810 4,050 4,280 860 920 970 246 260 280 Salaries 1,121 1,154 1,187 Payroll taxes 196 201 206 Employee benefits 179 184 189 Rent 72 75 78 Depreciation 72 75 78 Supplies 38 41 44 Utilities 33 36 39 Legal and accounting 46 49 52 Miscellaneous 24 27 30 Interest expense 354 372 384 Net income before taxes 569 656 743 Income taxes 128 148 167 Net income 441 508 576