Illuminating Light Partnership Had the Following Revenues, Expenses, Gains, Losses

question 42

Short Answer

Illuminating Light Partnership had the following revenues, expenses, gains, losses, and distributions: TALL LADDERS, LP
Income Statement Year 2
$\begin{array}{|l|r|}\hline \text { Sales } & 65,000 \\\hline \text { CoGs } & (47,000) \\\hline \text { Gross Profit } & 18,000 \\\hline \text { Interest Inc ome } & 3,000 \\\hline \text { Dividends } & 5,000 \\\hline \text { Long Term Capital Gain } & 10,000 \\\hline \text { Other Income } & 15,000 \\\hline \text { Total Other Inc ome } & 33,000 \\\hline \text { MACRS Depreciation } & (20,000) \\\hline \text { Guaranteed Payments } & (10,000) \\\hline \text { Charitable Contribution } & (10,000) \\\hline \text { Fines and Penalties } & (4,500) \\\hline \text { Other Expenses } & (8,500) \\\hline \text { Total other Expenses } & (53,000) \\\hline \text { Net Income (Loss) } & (2,000) \\\hline\end{array}$ Given these items, what is Illuminating Light's ordinary business income (loss) for the year?

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Definitions:

Debt-to-Equity Ratio

A measure of a company's financial leverage, determined by dividing its total liabilities by stockholders' equity.

Debt to Equity Ratio

A financial ratio indicative of the relative proportion of shareholders' equity and debt used to finance a company's assets.

Current Liabilities

Financial obligations that are due within one year or within the normal business cycle.

Working Capital

The difference between a company's current assets and current liabilities, representing its ability to pay off short-term obligations.