Last year, Stevens, Inc. had sales of $400,000 with a cost of goods sold of $112,000. The

Question:

Last year, Stevens, Inc. had sales of $400,000 with a cost of goods sold of $112,000. The firm's operating expenses were $130,000, and its increase in retained earnings was $58,000. There are currently 22,000 common stock shares outstanding and the firm pays a $1.60 dividend per share.

a. Assuming the firm's earnings are taxed at 34 percent, construct the firm's income statement.

b. Compute the firm's operating profit margin.

c. What was the times interest earned?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...