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You are a summer intern at the office of a local tax preparer. To test your basic knowledge of financial statements, your manager, who graduated
You are a summer intern at the office of a local tax preparer. To test your basic knowledge of financial statements, your manager, who graduated from your alma mater 2 years ago, gives you the following list of accounts B and asks you to prepare a simple income statement using those accounts. a. Arrange the accounts into a wel-labeled income statement. Make sure you label and solve for gross profits, operating profits, and net profits before taxes b. Using a 35% tax rate, calculate taxes paid and net profits after taxes c. Assuming a dividend of $1.16 per share with 4.19 million shares outstanding, calculate EPS and additions to retained earnings
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