Exercise 4-5 AXEL CORPORATION Income Statement For the Year Ended December 31, 2016 $592,000 Sales revenue Cost of goods sold 267,000 Gross profit Operating expenses $67.000 Selling 87,000 Administrative Restructuring costs Total operating expenses 58.000 Operating income Other income (expense): Interest and dividends 32,000 Interest expense Gain on sale of investments Total other income, net Income before income taxes 150,000 Income tax expense Net income Earnings per share 090 40% x$150,000 Exercise 4-5 AXEL CORPORATION Income Statement For the Year Ended December 31, 2016 $592,000 Sales revenue Cost of goods sold 267,000 Gross profit Operating expenses $67.000 Selling 87,000 Administrative Restructuring costs Total operating expenses 58.000 Operating income Other income (expense): Interest and dividends 32,000 Interest expense Gain on sale of investments Total other income, net Income before income taxes 150,000 Income tax expense Net income Earnings per share 090 40% x$150,000