A1 vix fx PROBLEM 4-3 B D E F computations only in the blue cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given 5 Data section. 6 DATA 7 Sales $400,000 8 Cost of goods sold 112,000 9 Operating expenses 130.000 10 Increase in retained earnings 58,000 11 Common stock outstanding 22,000 shares 12 Dividend per share $1.60 13 Tax rate 21% 14 15 SOLUTION a. Assuming the firm's earnings are taxed at 21 percent, construct the firm's 16 income statement. 17 18 Income Statement: 19 Net sales 20 Cost of goods sold 21 Gross profit 22 Operating expenses 23 Operating income 24 Interest expense 25 Income before taxes 26 Tax 27 Net income 28 29 b. Compute the firm's operating profit margin. 30 31 Operating profit margin 32 33 c. What was the times interest earned? 34 35 Times interest earned 36