Question
Last year the P. M. Postem Corporation had sales of $434,000, with a cost of goods sold of $110,000. The firm's operating expenses were $126,000,
Last year the P. M. Postem Corporation had sales of $434,000, with a cost of goods sold of $110,000. The firm's operating expenses were $126,000, and its increase in retained earnings was $92,820. There are currently 23,000 shares of common stock outstanding, the firm pays a $1.56 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.
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 | $ |
|
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Investment Risk Management
Authors: Yen Yee Chong
1st Edition
0470849517, 9780470849514
