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Last year, the P . M . Postem Corporation had sales of $ 4 2 7 , 0 0 0 , with a cost of

Last year, the P. M. Postem Corporation had sales of $427,000, with a cost of goods sold of $110,000. The firm's operating expenses were $129,000, and its increase in retained earnings was $110,800. There are currently 23,000 shares of common stock outstanding, the firm pays a $1.64 dividend per share, and the firm has no interest-bearing debt. a. Assuming the firm's earnings are taxed at 21percent, construct the firm's income statement. b. Compute the firm's operating profit margin. Question content area bottom Part 1 a. Assuming the firm's earnings are taxed at 21%, construct the firm's income statement. Complete the income statement below: (Round to the nearest dollar.) Income Statement Revenues $ Cost of Goods Sold Gross Profit $ Operating Expenses Net Operating Income $ Interest Expense Earnings before Taxes $ Income Taxes Net Income $

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