Question 1 (42 marks) You have been provided with information taken from the financial statements and working papers of Brutus Industries Ltd. for the year ended December 31, 2018. Brutus Industries Ltd. Income Statement Year Ended December 31, 2018 Sales (note 1) $13,995,000 Cost of sales (note 2) (11,450,000) Gross profit $ 2,545,000 Selling expenses $ 315,000 General & administrative expenses 125,500 Salaries & wages 825,456 Advertising & promotion 210,000 Repairs & maintenance 198,750 Interest & bank charges 67,000 Property taxes 85,000 Legal & accounting fees 39,400 Depreciation 81 amortization m $2,061,106 (2,016,106) Net income before taxes 35 528,894 Provision for income taxes current $187,500 future 105 000 (292,500) Net operating Income 236,394 Portfolio Dividends 15,000 Net income after taxes $ 251,334