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Answers go in the yellow boxesUse the following information to complete the income statement forcompany A for the year ending December 31, 201XRevenue$ 120,000,000Gross margin50.0%SellingGeneral and Administrative (SG&A)20.0%ofrevenueResearchand Development (R&D)15.00%ofrevenueDepreciation expense (D&A)$ 5,000,000InterestExpense$ 5,000,000InterestIncome$ 2,000,000Tax Rate35%Securities InformationWeightedAverage Shares (12/31/1X)$ 10,000,000AWarrants exercisable @ $2.00$ 2,200,000BWarrants Exercisable @ $3.00$ 2,500,000StockPrice (12/31/1X)$ 4.00COMPLETE THE FOLLOWING INCOME STATEMENTAnswersgo in the yellow boxesPointsRevenue$ 120,000,000Cost of Goods Sold1Gross Profit1Operating ExpensesSG&A1R&D1D&AOperating Expenses Total1Operating Income5IncomeExpense, net1Pre TaxIncome1Tax1NetIncome2EPSBasic5EPSDiluted10Totalpoints30