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(Evaluating profitability) Last year, Stevens Ine, had sales of $400,000, with a cost of goods sold of $114,000. The firmis operating expenses were $135,000, and
(Evaluating profitability) Last year, Stevens Ine, had sales of $400,000, with a cost of goods sold of $114,000. The firmis operating expenses were $135,000, and its increase in retained eamings was $51,000. There are currently 21,800 common stock shares outatanding and the firm pays a $1.83 dividend per share. a. Assuming the firm's earnings are taxed at 21 percent, construct the firm's income statement. b. Compute the firmis operating profit margin. c. What was the times interest eamed? a. Assuming the firm's eamings are taxed at 21 percent, construct the firm's income statement. (Round to the nnarest dollar. NOTE You may input expense accounts at negative values.)
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