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\mathrm{.}09$ per share with $4\mathrm{.}33$ 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

$