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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. 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 $1.02 per share with 4.26 million shares outstanding, calculate EPS and additions to retained earnings. Data table (Click the icon here p in order to copy the contents of the data table below into a spreadsheet.)
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