Question one...

Part one:

A-Rod Fishing Supplies had sales of $2,440,000 and cost of goods sold of $1,750,000. Selling and administrative expenses represented 8 percent of sales. Depreciation was 4 percent of the total assets of $4,870,000. What was the firms operating profit?

Part two:

Given the following information, prepare an income statement for the Dental Drilling Company.

Selling and administrative expense	$	90,000
Depreciation expense		75,000
Sales		621,000
Interest expense		46,000
Cost of goods sold		231,000
Taxes		50,000

Part three:

Prepare an income statement for Franklin Kite Co. Take your calculations all the way to computing earnings per share. (Round EPS answer to 2 decimal places.)

Sales	$	1,500,000
Shares outstanding		123,000
Cost of goods sold		410,000
Interest expense		29,000
Selling and administrative expense		47,000
Depreciation expense		32,000
Preferred stock dividends		89,000
Taxes		110,000