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 $1.03 per share with 4.23 million shares outstanding, calculate EPS and additions to retained earnings. a. Complete the income statement, down to the net profits before taxes line, below: (Select the account names from the drop-down menus and round the amounts to two decimal places.) Name of Company Income Statement ($000,000) 1. $ 2. Gross profits $ Less: Operating expenses 3. $ 4 5. 6. Total operating expense $ Operating profits (EBIT) $ 7. Net profits before taxes $ b. Complete the income statement, from the net profits before taxes line to the net profits after taxes line, below: (Round to two decimal places.) Name of Company Income Statement ($000,000) 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 $ 1 million. (Round to two decimal places.) Accounts Depreciation expense General and administrative expenses Sales Sales expenses Cost of goods sold Lease expense Interest expense ($Millions) 24.28 22.22 344.41 18.29 254.37 4.28 3.73