Page 106 - FINAL Combined CB2_Neat

PROFIT

Proudly, FGM continues to show Operating Profits for another year. Operating Profits discussed so
far in this report, however, are not the end of the story. The financial statements for the firm can
be found in Section 8. The following analysis details the difference between Operating Profits and
the Net Income as reflected on the Income Statement:

Operating Profit $ 803,245
Non-operating expenses (72,450)
Profit before distributions and taxes $ 730,795

Cash and Stock bonuses $ (628,581)
Contributions to ESOP (99,803)
Profit Sharing (59,622) (788,006)

Subtotal $ (57,211)

Tax benefit from Section 179D 105,112
Net Income $ 47,901

Profit Before Distributions & Taxes
Percent of Net Revenue

10.7%

5.6% 6.0% 7.0%

1.5%

FYE 13 FYE 14 FYE 15 FYE 16 FYE 17
Profit B-4 Distr/Tax $1,389,009 $732,547 $721,409 $163,976 $730,795

At each year end, Management determines the amount of operating profits to distribute. This
year, FGM held to the commitment to fund retirement by contributing almost $100,000 to the
Employee Stock Ownership Plan and elected a discretionary profit sharing contribution of almost
$60,000, which was deposited into eligible employee’s 401(k) accounts. After a lean year last