During the year, cost of goods sold was $80,000; income from operations was $76,000; income tax expense was $16,000; interest expense was $12,000; and selling, general, and administrative expenses were $44,000.

Required:

Calculate net sales, gross profit, income before taxes, and net income. (Exhibit 2-2 may he used as a solution model.)

Exhibit 2-2

Transcribed Image Text:

MAIN STREET STORE, INC. Income Statement For the Year Ended August 31, 2017 $1,200,000 850,000 Net sales. Cost of goods sold. $ 350,000 311,000 Gross profit. Selling, general, and administrative expenses. $ 39,000 9,000 Income from operations. Interest expense.. $ 30,000 12,000 Income before taxes... Income taxes. Net income... Earnings per share of common stock outstanding. $ 18,000 2$ 1.80