Problem 4-3 (similar to) Question Help (Evaluating profitability) Last year, Stevens Inc. had sales of $398,000, with a cost of goods sold of $118,000. The firm's operating expenses were $132,000, and its increase in retained earnings was $60,000. There are currently 21,500 common stock shares outstanding and the firm pays a $1.65 dividend per share. a. Assuming the firm's earnings are taxed at 21 percent, construct the firm's income statement. (Round to the nearest dollar. NOTE: You may input expense accounts as negative values.) a. Assuming the firm's earnings are taxed at 21 percent, construct the firm's income statement. (Round to the nearest dollar. NOTE: You may input expense accounts as negative values.) Stevens Inc. Income Statement $ Gross profits Operating profits $ Earnings before taxes $ Net income $