Question
At the end of its third year of operations, the Sandifer Manufacturing Co. had $4,561,000 in revenues, $3,360,000 in cost of goods sold, $458,000 in
At the end of its third year of operations, the Sandifer Manufacturing Co. had
$4,561,000
in revenues,
$3,360,000
in cost of goods sold,
$458,000
in operating expenses which included depreciation expense of
$147,000,
and a tax liability equal to
34
percent of the firm's taxable income. Sandifer Manufacturing Co. plans to reinvest
$51,000
of its earnings back into the firm. What does this plan leave for the payment of a cash dividend to Sandifer's stockholders?
Question content area bottom
Part 1
Complete the income statement for Sandifer Manufacturing Co.:(Round to the nearest dollar.)
| Revenues = | $ |
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| Less: | Cost of Goods Sold = | $ |
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| Equals: | Gross Profit = | $ |
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| Less: | Operating Expenses = | $ |
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| Equals: | Net Operating Income = | $ |
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| Less: | Interest Expense = | $ | 0 |
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| Equals: | Earnings before Taxes = | $ |
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| Less: | Income Taxes = | $ |
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| Equals: | Net Income = | $ | |||
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Public Finance Theory And Practice
Authors: M. Marlow
1st Edition
0030969603, 978-0030969607
