Chapter 5, Problem 5.18E

(a)

To determine

Income Statement: It is a financial statement that shows the net income earned, or net loss suffered by a company, through reporting all the revenues earned, and expenses incurred, by the company over a specific period of time. An income statement is also known as an operations statement, an earnings statement, a revenue statement, or a profit and loss statement. The net income is the excess of revenue over expenses.

To determine: Gross profit

(b)

To determine

operating expense.