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Basic Problems

Income statement $($LO$2-1[0]$ Frantic Fast Foods had earnings after taxes of $$420,000$ in $\frac{20}{x}$I with $309,000$ shares outstanding. On January $1\mathrm{.}20$X$2,$ the firm issued $20,000$ new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by $30$ percent.

a$.$ Compute earnings per share for the year $20$X$1.$

b$.$ Compute earnings per share for the year $20x2.$

Income statement $($LO$2-$I $)$ Sosa Diet Supplements had earnings after taxes of $$800,000$ in $20x1$ with $200,000$ Page $50$ shares of stock outstanding. On January $1,20$X$2,$ the firm issued $50,000$ new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by $30$ percent.

a$.$ Compute earnings per share for the year $20$X$1.$

b$.$ Compute earnings per share for the year $20x2.$

a$.$ Gross profit $($LO$2-1[?)$ Swank Clothiers had sales of $$383,000$ and cost of goods sold of $$260,000.$ What is the gross profit margin $($ratio of gross profit to sales$)?$

b$.$ If the average firm in the clothing industry had a gross profit of $25$ percent, how is the firm doing? and administrative expenses represented $10$ percent of sales. Depreciation was $6$ percent of the total assets of $$4,680,000.$ What was the firm's operating profit?