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Given your findings for Wellington Industries above, construct an income statement using the revised format. For simplicity's sake-and for this portion of the problem only-assume
Given your findings for Wellington Industries above, construct an income statement using the revised format. For simplicity's sake-and for this portion of the problem only-assume the following: Any semivariable cost is composed of a 50% variable-cost component and a 50% fixed-cost component (Remember, in actuality, these percentages will differ depending on the source of the cost.) All of the company's tax expense consists of sales and income taxes, and thus, varies proportionately with Wellington's sales All dollar amounts-except the firm's earings per share (EPS) should be rounded to the nearest whole dollar. The company's EPS should be expressed to two decimal places Wellington Industries Income Statement for the Year Ending June 30 Net sales Less: Variable operating costs Fixed operating costs Total operating costs Eamings before interest and taxes (EBIT) Less: Fixed capital costs Eamings before taxes (EBT) Less: Income taxes (Variable, 35%) Earings after taxes (EAT) Less: Fixed capital costs Eamings available to common shareholders 1,811,097 1.358323 58821910 Earnings per share (EPS) - 200,000 shares
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