Chapter 14, Problem 14.2AP

The comparative statements of Painter Tool Company are presented below and on page 643.

PAINTER TOOL COMPANY

Income Statement

For the Years Ended December 31

	2017	2016
Net sales	$1,818,500	$1,750,500
Cost of goods sold	1,011,500	996,000
Gross profit	807,000	754,500
Selling and administrative expenses	499,000	479,000
Income from operations Other expenses and losses	308,000	275,500
Interest expense	18,000	14,000
Income before income taxes	290,000	261,500
Income tax expense	87,000	77,000
Net income	$ 203,000	$ 184,500