SUPPORTING COMPUTATIONS
Cost of goods sold as a percentage of sales:
If general expenses = 15% of sales and 25% of cost of goods sold then:
	15%	of sales	=	25%	of cost of goods sold
	Cost of goods sold		=			/
	Cost of goods sold		=			of sales
Income before income taxes as a % of sales:
Sales							100%
Cost of goods sold (percentage from above)
Gross profit on sales
Selling expenses
General expenses
Income before income taxes as a percentage of sales
Sales:
Income before income taxes							$ 160,000
/ income before income taxes percentage (from above)
Sales
Net purchases:
Cost of goods sold
Less: Beginning inventory							136,000
Plus: Ending inventory
Net purchases
Selling expenses:
Sales (dollar amount from above)
x Selling expenses percentage (from above)
Selling expenses
General expenses (including doubtful accounts):
Sales (dollar amount from above)
x General expenses as a percentage of sales
Sales (dollar amount from above)
x Doubtful accounts as a percentage of sales
Total general expenses
Earnings per share:
Income before extraordinary items
Divided by shares of common stock						/	130,000
Income from operations per share
Extraordinary gain (net of income taxes)							$ 21,000
Divided by shares of common stock						/	130,000
Extraordinary gain per share
CARIBOU INC.
Income Statement
For the Year Ended December 31, 2013
Sales
Cost of goods sold:
	Beginning inventory						$ 136,000
	Net purchases
	Cost of goods available for sale
	Less: Ending inventory
	Cost of goods sold
Gross profit on sales
Operating expenses
	Selling expenses
	General expenses (including doubtful accounts)
Income before income taxes and extraordinary items
Income taxes
Income before extraordinary items
Extraordinary gain (net of income taxes of $9,000)									$ 21,000
Net income
Earnings per share:
	Income before extraordinary items
	Extraordinary gain
	Net income