Answer:
Step-by-step explanation:
What I will do is attach a picture of the income statement prepared, and explained the process and figures gotten, first we start with writing the Revenue with the year 2019, for the revenue, the only value given is the Fees earned, then after Revenue, we go to expenses, where we have Office, Miscellaneous, and wages, then we find the total of that, then after this we go to net income before Taxes, which is the difference with the total revenue and total expense, which is $745,515 - $544,225 = $201,290
Then we find the income tax expenses and we assume that tax is 40% of your profit, which is 40% of $201,290 = 40/100 x 201290 = $80,516
Then we find the net income which is the income tax expense subtracted from the net income before tax
201290 - 80516 = 120,774
Find the picture attached from the income statement
