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45 9 6. You are a summer intern at the office of a local tax preparer. To test your basic knowledge of financial statements,
45 9 6. You are a summer intern at the office of a local tax preparer. To test your basic knowledge of financial statements, your manager gives you the following list of accounts and asks you to prepare a simple income statement using those accounts. a. Arrange the accounts into a well-labeled income statement. Make sure you label and solve for gross profits, operating profits, and net profits before taxes. b. Using a 35% tax rate, calculate taxes paid and net profits after taxes. c. Assuming a dividend of $1.17 per share with 4.16 million shares outstanding, calculate EPS and additions to retained earnings a. Complete the income statement, down to the net profits before taxes line, below: (Select the account names from the drop-down menus and round the amounts to two decimal places.) Name of Company Income Statement (5000,000) 2. Gross profits Less: Operating expenses,
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