evaluating profitability Last year, Stevens Inc. had sales of

$401 comma 000

,

with a cost of goods sold of

$111 comma 000

.

The firm's operating expenses were

$ 131 comma 000

,

and its increase in retained earnings was

$58 comma 000

.

There are currently

22 comma 500

common stock shares outstanding and the firm pays a

$1.57

dividend per share.

a. Assuming the firm's earnings are taxed at

34

percent, construct the firm's income statement.

b. Compute the firm's operating profit margin.

c. What was the times interest earned?