2. Bettis Bus Company had earnings after taxes of $600,000 in the year 2009 with 300,000 shares of stock outstanding. On January 1, 2010, the firm issued 40,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 25 percent. a. Compute earnings per share for the year 2009. b. Compute earnings per share for the year 2010. 3.a. Hillary Swank Clothiers had sales of $360,000 and cost of goods sold of $244,800. What is the gross profit margin (ratio of gross profit to sales)? b. If the average firm in the clothing industry had a gross profit of 35 percent, how is the firm doing? 6. Given the following information prepare in good form an income statement for the Dental Drilling Company Selling and administrative expense ............................................................ $ 60,000 Depreciation expense ................................................................................. 70,000 Sales ........................................................................................................... 470,000 Interest expense ......................................................................................... 40,000 Cost of goods sold ..................................................................................... 1 40,000 Taxes .......................................................................................................... 45,000 7. Given the following information, prepare in good form an income statement for Jonas Brothers Cough Drops. Selling and administrative expense ............................................................ $ 250,000 Depreciation expense ................................................................................. 1 90,000 Sales ........................................................................................................... 1 ,600,000 Interest expense ......................................................................................... 1 20,000 Cost of goods sold ..................................................................................... 480,000 Taxes .......................................................................................................... 1 65,000 10. Precision Systems had sales of $800,000, cost of goods sold of $500,000, selling and administrative expense of $60,000, and operating profit of $100,000. What was the value of depreciation expense? Set this problem up as a partial income statement, and determine depreciation expense as the plug figure. 16. Okra Snack Delights, Inc., has an operating profit of $210,000. Interest expense for the year was $30,000; preferred dividends paid were $24,700; and common dividends paid were $36,000. The tax was $59,300. The firm has 16,000 shares of common stock outstanding. a. Calculate the earnings per share and the common dividends per share. b. What was the increase in retained earnings for the year? 27. On December 31, 2009, the balance sheet of Baxter Corporation was as follows: Current Assets Liabilities Cash $ 1 0,000 Accounts payable $ 1 2,000 Accounts receivable 1 5,000 Notes payable 20,000 Inventory 25,000 Bonds payable 50,000 Prepaid expenses 1 2,000 Fixed Assets Stockholders