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 LOADING...

and asks you to 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 35 %

35% tax?rate, calculate taxes paid and net profits after taxes.

c. Assuming a dividend of $ 1.14

$1.14 per share with 4.17

4.17 million shares?outstanding, calculate EPS and additions to retained earnings.

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 (35%)

Net profits after taxes

$

c. The?firm's EPS is ?$

nothing

. ?(Round to the nearest?cent.)

The?firm's additions to retained earnings are ?$

nothing

million.???(Round to two decimal?places.)