- 6 -
Petitioner received progress payments for work completed.
Petitioner computed its taxable income by deducting the cost of
materials and supplies in the year when they were purchased.
Petitioner had inventory in the amounts of $73,542 and
$98,194 for the fiscal years ending January 31, 1989 and 1990,
respectively. Petitioner had no inventory on the first day of
the fiscal year ending January 31, 1989.
Petitioner's gross receipts, cost of materials, accounts
receivable, and accounts payable for the fiscal years in issue
are summarized as follows:
FY 1988 FY 1989 FY 1990
Gross receipts $1,283,428 $2,720,274 $1,485,687
Cost of materials 250,628 506,881 382,640
Accounts receivable 619,561 589,711 788,156
Accounts payable 117,847 39,993 159,305
Cost of materials as a
percent of gross receipts 19.5% 18.6% 25.8%
Deemed admissions aside, respondent filed motions to compel
requesting that the Court direct petitioner to respond to
respondent's interrogatories and request for production of
documents. We granted respondent's motions to compel and
directed petitioner to respond to respondent's discovery
requests. Petitioner failed to comply with the Court's order.
As indicated, respondent filed a Motion for Summary Judgment
seeking judgment in her favor on all issues. Respondent contends
Page: Previous 1 2 3 4 5 6 7 8 9 10 Next
Last modified: May 25, 2011