- 8 - its traders. The Officers recruited, interviewed, hired, and trained petitioner’s employees. The Officers also were petitioner’s executive officers and managers. They were directly responsible for profit maximization, long-term business planning, office automation, cash management, physical plant expansion, marketing, and all other management functions. When not trading, Mr. Woll focused on administrative functions and was in charge of cash disbursements, cash receipts, billing, receivables, and investigating credit. Mr. Woll also dealt with petitioner’s accountants, lawyers, and bankers, and he supervised petitioner's bookkeeping staff. The Officers supervised the shipping staff, and they personally inspected every part received by petitioner in order to ensure that the parts were not counterfeit or defective. 3. Petitioner's Operations For the 3-year period ended with the year in issue, petitioner's gross receipts (net of returns and allowances), gross income, book income, taxable income, Officers' compensation, Officers' compensation percentages, and Officers' equity were (rounded to the nearest dollar): Taxable Year Gross Ended Receipts Net Income Taxable Officers' Gross July 31 (Net) Per Books Net Income1 Compensation Income 19832 $2,671,061 $88,903 $88,903 $26,000 $279,158 1984 29,763,657 1,796,032 1,823,904 1,449,000 5,415,936Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
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