ABC Corporation - Partial Income Statement - FY 2016

Revenue ............................................. $ 12,000,000

Cost of Goods Sold ..................................... 4,000,000

Selling General and Admin. ....................... 1,500,000

Research and Development .......................1,200,000

Depreciation ................................................ 1,500,000

Operating Expenses ............................... ????

Operating Income .................................. ????

Interest Income ................................................200,000

Interest Expense ..............................................300,000

Pre-Tax Income .........................................3,700,000

Tax (35% rate)

EPS Basic .................................................. $ ??

Weighted avg. Shares ...........1,300,000

Use the above information to answer the following four questions:

What is ABC's Gross Profit for 2016?

1. $12,000,000

2. $8,000,000

3. $4,200,000

4. $2,405,000

What is ABC's Operating Income?

1. $8,000,000

2. $3,800,000

3. $3,700,000

4. $2,405,000

What is ABC's Earnings Per Share for 2016?

1. $2.00

2. $1.95

3. $1.85

4. $1.15

If a company had retained earnings of $60,000 at the beginning of the year, net earnings of $50,000, and a year ending retained earnings of $90,000, it paid its owners a dividend at some point during the year.

1. True
2. False