N NewCo Income Statement For the Years Ending [Dec 31, 2016 and Dec 31, 2017 2017 Credit Sales Revenue Sales revenue (Less retums) Service revenue Interest revenue Other revenue Total Revenues (Sales) 2016 110,000 (250) 70 000 95,000 (500) 62 000 179.750 156,500 50% 2016 6495 2017 (Net Sales-COGSYNet Sales 1000 1000 Gross Margin% Net Income % 12% (Net Income/Sales) x 100 65 000 63.000 Expenses to Sales 4396 (Operating Expense Net Sales x 100 8.000 Operating expenses called SG&A are the remaining costs after subtracting COGS) Expenses Advertising Bad debt Commissions 6 Cost of goods sold 7 Depreciation 18 Employee benefits Furniture and equipment 20 Insurance 21 Interest expense 22 Maintenance and repairs Office supplies 24 Payroll taxes 25 Rent 26 Research and development 27 Salanes and wages 2B Software 29 Travel 1 NewCo Income Statement 4200 5.200 55.000 55.000 NewCo Balance Sheet Rock Bottom income St. GZS D F 65 000 63,000 16 17 18 19 20 G H 1 K Pg 141 Label Expenses to Sales 06 43% Operating Expense/Net Sales) x 100 Pgs 141/142 Label ("Operating expenses, called SGRA are the remaining costs after subtracting COGS) 8.000 4.200 5 200 B c Cost of goods sold Depreciation Employee benefits Furniture and equipment Insurance Interest expense Maintenance and repairs Office supplies Payroll taxes Rent Research and development Salaries and wages Software Travel Utilities Web hosting and domains Other Total Expenses 55.000 55,000 17460 142,660 27 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 132,200 Net Income Before Taxes Income tax expense 37 090 14.936 24 300 9.920 14,380 22,154 Income from Continuing Operations Below-the-Line Items Income from discontinued operations Elfect of accounting changes Extraordinary items 22,154 14,380 Net Income 2 Rock Bottom income to