Last year the P. M. Postem Corporation had sales of $400,000 , with a cost of goods sold of $114,000 . The firm's operating expenses were $130,000 , and its increase in retained earnings was $69,800 . There are currently 20,000 shares of common stock outstanding, the firm pays a $1.58 dividend per share, and the firm has no interest-bearing debt.

a. Assuming the firm's earnings are taxed at 35 percent, construct the firm's income statement.

b. Compute the firm's operating profit margin.

Revenues_________

cost of goods sold ______________

gross profit _______________

operating expenses ____________

net operating income ____________

interest expense _________________

earnings before taxes _______________

income taxes ___________________

net income _____________________