Income Statements (LO2, CFA3) Given the following information for Smashville, Inc., construct an income statement for the year:

Cost of goods sold:	$164,000
Investment income:	$1,200
Net sales:	$318,000
Operating expense:	$71,000
Interest expense:	$7,400
Dividends:	$3,200
Tax rate:	21%

1. What are retained earnings for the year?

2. Balance Sheets (LO2, CFA4) Given the following information for Smashville, Inc., construct a balance sheet:

Current liabilities:	$42,000
Cash:	$21,000
Long-term debt:	$102,000
Other assets:	$36,000
Fixed assets:	$150,000
Other liabilities:	$11,000
Investments:	$32,000
Operating assets:	$64,000

3. Performance Ratios (LO3, CFA6) Given the information in Problems 1 and 2, calculate the gross margin, the operating margin, return on assets, and return on equity for Smashville, Inc.

4. Per-Share Ratios (LO3, CFA6) During the year, Smashville, Inc., had 17,000 shares of stock outstanding and depreciation expense of $15,000. Calculate the book value per share, earnings per share, and cash flow per share.

5. Price Ratios (LO3, CFA6) At the end of the year, Smashville stock sold for $48 per share. Calculate the price-book ratio, price-earnings ratio, and price-cash flow rat