HAINZ COMPANY

Income Statement

For the Year Ended December 31,

2021 2020

Net sales............................................................................................$400,000 $380,000

Cost of goods sold............................................................................. 250,000 209,000

Operating expenses............................................................................ 42,000 95,000

Interest expense................................................................................. 18,000 17,100

Income tax expense........................................................................... 27,000 17,670

HAINZ COMPANY

Comparative Balance Sheet

December 31,

Assets 2021 2020

Cash................................................................................................... $ 20,000 $ 40,000

Short-term investments..................................................................... 20,000 60,000

Accounts receivable (net).................................................................. 40,000 30,000

Inventory........................................................................................... 60,000 70,000

Property, plant and equipment (net).................................................. 260,000 300,000

Total assets ................................................................................. $400,000 $500,000

Liabilities and stockholders' equity

Accounts payable.............................................................................. $ 20,000 $ 30,000

Short-term notes payable................................................................... 40,000 90,000

Bonds payable................................................................................... 80,000 160,000

Common stock................................................................................... 150,000 150,000

Retained earnings.............................................................................. 110,000 70,000

Total liabilities and stockholders' equity..................................... $400,000 $500,000

Additional information:

a. Cash dividends of $23,000 were declared and paid in 2021.

b. Weighted-average number of shares of common stock outstanding during 2021 was 30,000 shares.

c. Market value of common stock on December 31, 2021, was $21 per share.

Instructions

1. Prepare an Income Statement that present the gross profit, operating profit, net profit, and earnings per share (EPS).