Last year, Token Corporation reported \($1,230,000\) in sales with a cost of goods sold of \($520,000,\) and operating expenses of \($440,000.\) The increase in the firm’s retained earnings was \($50,000.\) There are currently 70,000 common stock shares outstanding and the firm pays a \($1\) dividend per share.

a. Assuming the firm’s earnings are taxed at 25 percent, construct the firm’s income statement.

b. Compute Token’s operating profit margin.

c. What was the times interest earned?