Last year the P. M. Postem Corporation had sales of

$449,000,

with a cost of goods sold of

$114,000.

The firm's operating expenses were

$128,000,

and its increase in retained earnings was

$101,750.

There are currently 20,000

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.