Slide 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. Loss on se ttlement of lawsuit This tax expense Income taxes does not include Income from Continuing operations effects of unusual Discontinued Operations nonrecurring items.0 Extraordinary Items 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 12-4 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 This tax expense does not include effects of unusual, nonrecurring items