Income Statement Preparation: On December 30,2015, Cathey Chen, a self employed CPA, completed her first full year in business. During the year, she billed $360000 for her accounting services. She had two employees, a bookkeeper and a clerical assistant. In addition to her monthly salaries of $8000, Ms. Chen paid annual salaries of $48000 and $36000 to the bookkeeper and the clerical assistant, respectively. Employment taxes and benefit costs for Ms. Chen and her employees totaled $34600 for the year. Expenses for office supplies including package, totaled $10400 for the year. In addition, Ms. Chen spent $17000 during the year on tax-deductible travel and entertainment associated with client visits and new business development. Lease payments for the office space rented (a tax-deductible expense) were $2700 per month. Depreciation expense on the office furniture and fixtures was $15600 for the year. During the year, Ms. Chen paid interest of $15000 on the $120000 borrowed to start the business. She paid an average tax rate of 30% during 2015.
Prepare an income statement for Cathey Chen CPA for the year ended Dec 31, 2015.
Evaluate her financial performance.