I tried to keep it in good form, but I did add the calculations in as well.
Censored Books, Inc
Income Statement
For the Year Ending December 31, 2007
Sales 1,400 x 160 = 224,000
COGS 1,400 x 125 = 175,000
Gross Profit 49,000
Operating Expenses:
Selling Expenses 8,000
Depreciation Expense 12,000
Interest Expense 90,000 x 0.10 = 9,000
Total Operating Expenses 29,000
Income Before Taxes 49,000-29,000 = 20,000
Taxes 0.30 x 20,000 = 6,000
Net Income 20,000 – 6,000 = 14,000
Conclusion, yes they made a profit in 2007.
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