Karen is single and manages a retail store, The Cat's Walk. She came to see you on April 15, 2xx5 to prepare her income taxes. Her 1040 Schedule C...

Karen is single and manages a retail store, The Cat's Walk. She came to see you on April 15, 2xx5 to prepare her income taxes. Her 1040 Schedule C reflects the following operating results: 2xx1 Profit $20,000 (1st year in business), 2xx2 Profit $ 4,000, 2xx3 Loss $10,000, 2xx4 Loss $16,000. Karen tells you that this year's profit does not look good either. How can you help Karen?