Question
(Profitability analysis)Last year the P. M. Postem Corporation had sales of $425,000, with a cost of goods sold of $110,000. The firm's operating expenses were
(Profitability analysis)Last year the P. M. Postem Corporation had sales of $425,000, with a cost of goods sold of $110,000. The firm's operating expenses were $125,000, and its increase in retained earnings was $91,900. There are currently 20,000 shares of common stock outstanding, the firm pays a $1.58 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 |
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Revenues | $ |
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Cost of Goods Sold |
|
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Gross Profit | $ |
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Operating Expenses |
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Net Operating Income | $ |
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Interest Expense |
|
|
Earnings before Taxes | $ |
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Income Taxes |
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Net Income | $ |
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