directed, use the earliest appearance of the data in your formulas, usually the Given Data section. DATA Sales $400,000 Cost of goods sold 112,000 Operating expenses 130.000 Increase in retained earnings 58,000 Common stock outstanding 22,000 shares Dividend per share $1.60 Tax rate 21% SOLUTION a. Assuming the firm's earnings are taxed at 21 percent, construct the firm's income statement. Income Statement: Net sales Cost of goods sold Gross profit Operating expenses Operating income Interest expense Income before taxes Tax Net income b. Compute the firm's operating profit margin. Operating profit margin c. What was the times interest earned? Times interest earned