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Uncle Ernie's Lumber Emporium Part-1 Your uncle Ernie just passed away and left you his lumberyard. Uncle Ernie's will says that you must operate the lumberyard for at least five years after his death; after the five- year period, you can sell it or continue to operate it. Going through last year's records you notice that the lumberyard had cash sales of S130,000 and credit card sales of S120,000. Uncle Ernie's lumberyard also received $250,000 in account sales. The lumberyard paid a total of $200,000 for the merchandise and S25,000 for shipping to obtain goods for sale. Last year uncle Ernie paid himself a salary of S1250 per month and paid his remaining employees a salary of S110,000 for the year (including FICO); in addition he paid $4,950 for advertising, S, 1250 for supplies, S1,500 for miscellaneous shipping and delivery to customers, S4,500 for insurance, $5,000 for maintenance, and $2,500 to lease computers and cash registers. (Note: assume a 20% tax rate) From this information, create a profit and loss statement and indicate what uncle Ernie made last year (round answers to the nearest $25 increment). Income Net Sales Cost of Goods Sold Gross Profit Operating Expenses Salaries Advertising Supplies Shipping Insurance Maintenance Leased Equipment Total Net profit before taxes Taxes Net profit after taxes

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