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please do it with steps and explanation!

please do it with steps and explanation!

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Answer #1

SOLUTION:

Income Statement
Operating revenues:
Consulting fees revenue (10,700+1740) 12,440
     Total operating revenues 12,440
Operating expenses
   Salaries expense 6,330
   Utilities expense 1,980
     Total operating expenses 8,310
Operating income 4,130
Other item:
   Interest revenue 16
Net income 4,146
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