Slide 12-3 Ross Corporation Income Statement For the year ended december 31. 2001 Net sales $8,000,000 Cost of goods sold 4,500,000 Gross margin $3,500,000 Operating expenses Selling expenses $1,500,000 General& Admin. exp. 920.000 Loss on settlement of lawsuit 80.000 Income taxes 300,0002800,000 Income from Continuing Operations $700,000 Discontinued operations 245,000 Extraordinary Items (70,000) Cumulative effect of a change in accounting principle 140,000 Net income $1,015,000 Irwin/McGraw-Hill ?The McGraw-Hill Companies, Inc, 1999?The McGraw-Hill Companies, Inc., 1999 Slide 12-3 Irwin/McGraw-Hill Ross Corporation Income Statement For the Year Ended December 31, 2001 Net Sales $ 8,000,000 Cost of goods sold 4,500,000 Gross margin $ 3,500,000 Operating expenses: Selling expenses $ 1,500,000 General & Admin. exp. 920,000 Loss on settlement of lawsuit 80,000 Income taxes 300,000 2,800,000 Income from Continuing Operations $ 700,000 Discontinued Operations 245,000 Extraordinary Items (70,000) Cumulative effect of a change in accounting principle 140,000 Net income $ 1,015,000