The Rainbow Company's income statement and comparative balance sheets as of December 31 of 2013 and 2012 follow:RAINBOW COMPANYIncome StatementFor the Year Ended December 31, 2013Sales Revenue$1,050,000Dividend Income21,0001,071,000Cost of Goods Sold$616,000Wages and Other Operating Expenses182,000Depreciation Expense54,600Patent Amortization Expense9,800Interest Expense18,200Income Tax Expense61,600Loss on Sale of Equipment7,000Gain on Sale of Investments(14,000)935,200Net Income$135,800
