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:

Depreciation expense 25.31

General and administrative expenses 21.85

Sales 345.61

Sales expenses 18.26

Cost of goods sold 255.84

Lease expense 4.42

Interest expense 3.68

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

c. Assuming a dividend of $1.09 per share with 4.23 million shares outstanding, calculate EPS and additions to retained earnings.