Stein Books Inc. sold 2,000 finance textbooks for $270 each to High Tuition University in 2013. These books cost $240 to produce. Stein Books spent $12,400 (selling expense) to convince the university to buy its books.
Depreciation expense for the year was $15,400. In addition, Stein Books borrowed $106,000 on January 1, 2013, on which the company paid 16 percent interest. Both the interest and principal of the loan were paid on December 31, 2013. The publishing firm’s tax rate is 30 percent.
Did Stein Books make a profit in 2013? Please verify with an income statement presented in good form.