Problem: Kit Karson, the owner of Karson Kutlery and Knives, LLC is preparing a loan application. Using the data below (only), prepare an income statement and compute the profit margin on sales. Include totals for gross margin, sales general, and administrative earnings before interest and taxes (sometimes called "income from operations"), pretax income, and net income.
| Net Sales |
$1,600,652 |
|
| Hourly Labor Costs |
$520,391 |
|
| Material Costs |
$420,231 |
|
| Marketing |
$43,980 |
|
| Depreciation |
$58,122 |
|
| Research and Development |
$25,000 |
|
| Administrative |
$178,325 |
|
| Interest Expense |
$21,608 |
|
| Taxes |
30% |
of pretax Income |