Washington Irving, Inc. Comparative Statements of Comprehensive Income For the Year Ending January 31, 2018 2017 2016 Gross sales $ 3,870,250.00 $ 3,250,000.00 Less: Sales returns (1) $ (275,000.00) $ (150,000.00) Net sales $ 3,595,250.00 $ 3,100,000.00 Cost of goods sold $ (2,260,890.00) $ (1,850,000.00) Gross profit $ 1,334,360.00 $ 1,250,000.00 Operating expenses: Selling expenses $ 526,800.00 $ 425,000.00 General and administrative expenses $ 382,500.00 $ 279,800.00 Research and development expenses $ 75,000.00 $ 125,000.00 Goodwill impairment $ 60,000.00 $ 200,000.00 Depreciation expense $ 425,000.00 $ 365,000.00 Amortization expense (leases) $ 60,872.40 $ - Bad debts expense $ 24,890.00 $ - Total operating expenses $ 1,555,062.40 $ 1,394,800.00 Operating income $ (220,702.40) $ (144,800.00) Other income (expense): Interest and dividend revenue $ 159,800.00 $ 126,500.00 Gain (loss) on sale of TS investments $ (1,250.00) $ - Gain (loss) on sale of property $ (12,500.00) $ 165,000.00 Unrealized holding gain (loss) on TS investments $ 12,590.00 $ 18,750.00 Interest expense $ (101,287.60) $ (90,650.00) Total other income (expense), net $ 57,352.40 $ 219,600.00 Income before income taxes $ (163,350.00) $ 74,800.00 Income tax expense (benefit) $ (3,972.50) $ 26,180.00 Net income $ (159,377.50) $ 48,620.00 Other Comprehensive Income Defined benefit plans, net $ (118,900.00) $ (135,900.00) Unrealized holding gain (loss) on AFS investments $ 78,650.00 $ 32,500.00 Comprehensive income (loss) $ (199,627.50) $ (54,780.00)