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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. b. Using a 21% tax rato, calculate taxes paid and net proteste for foreare you label and solve for gress preslits, operating profits, and net profits before taxes. c. Assuming a dividend of $1.11 per share with 4.23 million shares outstanding, calculate EPS and additions to retained earnings. a. Complete the income statement, down to the net parolis before taxes line, below: (Select the account naines from the drop-down menus and round the amounts to two decimal places.) Name of Company Income Statement ($000,000) 1. 2. $ Gross profils Less: Operating expenses 3. S 6. Total operating expense Operating profils (EBIT) S 7. Net nils before taxes S b. Complete the income statement, from the net profite before taxee line to the net profits after taxes line, below: (Round to two decimal places.) Name of Company Income Statement (S000,000) Cont'd Net profits before taxes $ Less: Taxes (21%) Net profits after taxes $ c. The firm's EPS is $. (Round to the nearest cent.) The firm's additions to retained earnings are $_million (Round to two decimal places.) i Data Table (Click on the icon located on the top-right corner of the data table below in order to copy its contents into a spreadsheet.) Accounts Depreciation expense General and administrative expenses Sales Sales expenses Cost of goods sold Lease expense Interest expense ($000,000) 24.85 22.19 344.15 17.86 254.33 4.04 2.17
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