Question

What is the net income for this income statement? For 1988 only please.

-EXHIBIT 1 Bradford Drug, Inc. Income Statements for 1988–1992 (thousands) I988 1989 1990 7,058,0137,64 3,553,9583,596 3.598 $4 ,68 I991 , 8,805 I5 1992 10,046 4,813 $ 5,173 4,591 2,499 3,471 3,088 307 jes 60 195 358 205 17 198 330 354 397 4 བ00 3,I08 བ0 349 1,014 520 1,048 _172 5,53 I,168 179 1,183 154 216 Sales Cost of goods sold Gross profit Operating expensest General and admin- istrative Selling and advertising Depreciation Research and de- velopment Total operating expenses Operating income Other incomet Earnings before in- terest and taxes Interest expense Earnings before taxes Income taxes @ 40% Earnings after taxes Preferred dividends Earnings available for common Common dividends Increase in retained earnings Earnings per share Number of com- mon shares 64 19? 1,17? 1,23 161 1 1, ls5 ,55 1,082 1,16 1,059 424 458 686 30 4 ， 299 ， _301 318 ༠ 8 109 1 15 15 34,80340,625451,430455,150474,485 Credit sales normally represent 80 percent of total sales Lease payments included in the operational expenses are $100,000 in 1988 and 1989. $200,000 in I980 and lel,ndo0.00 in ]9 Other income is made up of profits from Young Industries, a Bradford subsidiary in the cosmetics industry, and long-term security investments

Answer 1

​​​​​​Net income = Sales - COGS - operating expenses + other incomes - interest expense - taxes

So the Net income for 1988

= 7053 - 3455 - 3108 + 154 - 122 - 209

= $313

(Net income = Earnings after tax)