Last year, the Allen Corporation had sales of $12.3 million with a cost of goods sold of $3,750,000. The firms operating expenses were $2,660,000, and its increase in retained earnings was $525,000. There are currently 100,000 common stock shares outstanding and the firm pays a $2.20 dividend per share. The firm had $11 million in assets of which half was in current assets. Also the debt ratio (Debt/Assets) was 35%. It is known that 40% of the company debt was in current liabilities.

(a) Assuming the firms earnings are taxed at 34% (effective tax rate), construct the firms income statement

(b) Compute the firms operating profit margin.

(c) What was the times interest earned? Show your calculation.

(d) Compute the firms acid test ratio. Show your calculation.