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(Profitability analysis) Last year the P. M. Postem Corporation had sales of $426,000, with a cost of goods sold of $112,000. The firm's operating expenses

(Profitability analysis) Last year the P. M. Postem Corporation had sales of $426,000, with a cost of goods sold of $112,000. The firm's operating expenses were $126,000, and its increase in retained earnings was $88,810. There are currently 21,000 shares of common stock outstanding, the firm pays a $1.59 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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