Last year the P. M. Postem Corporation had sales of $419,000, with a cost of goods sold of $110,000. The firm's operating expenses were $126,000,

and its increase in retained earnings was $79,590.

There are currently 24,000

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

35

percent, 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

35%,

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	$