=+DUSAN WATER SUPPLIES INC.

Comparative Income Statement For the Years Ended December 31, 2008 and 2007 2008 2007 Sales $255,000 $214,000 Sales returns and allowances 5,000 4,000 Net sales $250,000 $210,000 Cost of goods sold 142,500 121,800 Gross profit $107,500 $ 88,200 Selling expenses $100,000 $ 50,400 Administrative expenses 20,000 16,800 Total operating expenses $120,000 $ 67,200 Income from operations $(12,500) $ 21,000 Other income 6,250 4,200 Income before income tax $ (6,250) $ 25,200 Income tax expense (benefit) (2,500) 8,400 Net income (loss) $ (3,750) $ 16,800 Instructions