During the year, cost of goods sold was $41,000; income from operations was $39,000; income tax expense was $8,100; interest expense was $6,100; and selling, general, and administrative expenses were $23,000. Required: Calculate net sales, gross profit, income before taxes, and net income. Income Statement Net sales Cost of goods sold Gross profit Selling, general, and administrative expenses Income from operations. Interest expense Income before taxes Income tax expense Net income 41,000 23,000 39,000 6,100 8,100 www

The transaction analysis is done with the help of the accounting equation. The basic accounting equation is alternatively known as the balance sheet equation is based on the double-entry system which says that for each transaction happening in a business…