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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 gives you
You are a summer intern at the office of a local tax preparer. To test your basic knowledge of financial statements, your manager gives you the following list of accounts and asks you to prepare a simple income statement using those accounts. a. Arrange the accounts into a well-labeled income statement. Make sure you label and solve for gross profits, operating profits, and net profits before taxes. b. Using a 21% tax rate, calculate taxes paid and net profits after taxes. c. Assuming a dividend of $1.07 per share with 4.28 million shares outstanding, calculate EPS and additions to retained earnings. Data table (Click the icon here in order to copy the contents of the data table below into a spreadsheet.)
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