3-2

(Working with the income statement)At the end of its third year of operations, the Sandifer Manufacturing Co. had

$4,520,000 in revenues, $3,305,000 in cost of goods sold, $445,000 in operating expenses which included depreciation expense of

$148,000, and a tax liability equal to 34 percent of the firm's taxable income. Sandifer Manufacturing Co. plans to reinvest

$41,000of its earnings back into the firm. What does this plan leave for the payment of a cash dividend toSandifer's stockholders?

Complete the income statement for Sandifer Manufacturing Co.:(Round to the nearest dollar.)

Revenues =		$
Less:	Cost of Goods Sold =	$
			Equals:	Gross Profit =	$
Less:	Operating Expenses =	$
			Equals:	Net Operating Income =	$
Less:	Interest Expense =	$	0
			Equals:	Earnings before Taxes =	$
Less:	Income Taxes =	$
			Equals:	Net Income =	$