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Sales revenue $5,075,000 Less: Cost of goods sold 3,704,000 Gross profits $1,371,000 Less: Operating expenses Selling expense $650,000 General and administrative expenses 416,000 Depreciation expense

Sales revenue

$5,075,000

Less: Cost of goods sold

3,704,000

Gross profits

$1,371,000

Less: Operating expenses

Selling expense

$650,000

General and administrative expenses

416,000

Depreciation expense

152,000

Total operating expense

1,218,000

Operating profits

$153,000

Less: Interest expense

93,000

Net profits before taxes

$60,000

Less: Taxes (rate =

40%)

24,000

Net profits after taxes

$36,000

Less: Preferred stock dividends

3,000

Earnings available for common stockholders

$33,000

Earnings per share (EPS)

$0.33

Martin Manufacturing Company Balance Sheets

December 31

Assets

2019

2018

Current assets

Cash

$25,000

$24,100

Accounts receivable

805,556

763,900

Inventories

700,625

763,445

Total current assets

$1,531,181

$1,551,445

Gross fixed assets (at cost)

$2,093,819

$1,691,707

Less: Accumulated depreciation

500,000

348,000

Net fixed assets

$1,593,819

$1,343,707

Total assets

$3,125,000

$2,895,152

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable

$230,000

$400,500

Notes payable

311,000

370,000

Accruals

75,000

100,902

Total current liabilities

$616,000

$871,402

Long-term debt

$1,165,250

$700,000

Total liabilities

$1,781,250

$1,571,402

Stockholders' equity

Preferred stock

(2,500

shares,

$1.20

dividend)

$50,000

$50,000

Common stock

(100,000

shares at

$4.00

par)*

400,000

400,000

Paid-in capital in excess of par value

593,750

593,750

Retained earnings

300,000

280,000

Total stockholders' equity

$1,343,750

$1,323,750

Total liabilities and stockholders' equity

$3,125,000

$2,895,152

*The firm's

100,000

outstanding shares of common stock closed

2019

at a price of

$11.38

per share.

Need to know NET profit margin for 2019. I know it's Earnings available for common stockholders/sales for equation, but I am struggling to find the sales #.

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