FINANCIAL MANAGEMENT ANALYSIS EXERCISES Net sales Cost of sales Gross income Exercise 1 Baxter Distribution Company Ltd. Income Statement for the years ending November 30 (in 000s of dollars) 2018 2017 2016 $ 32,624 $ 23,544 $ 19,436 22.520 16.492 14.284 $ 10,104 S 7,052 $ 5,152 Operating expenses: Bad debt expense S 108 S 20 $ 264 General and administrative expense 1,012 828 736 Salaries 4,420 3,280 2,776 Selling expense Depreciation 1,320 888 752 416 264 264 Total operating expenses S 7,276 $ 5,280 $ 4,792 Income from operations $ 2,828 $ 1,772 $ 360 Plus: other income 444 552 396 Less: interest expense 412 220 248 Income before tax $ 2,860 $ 2,104 508 Income tax 1,312 972 248 Net income after tax S 1.548 S 1.132 260