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 51.16 per share with 4.24 million shares outstanding, calculate EPS and additions to retained earings 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 (5000,000) 1 $ 2 Gross profits Less: Operating expenses 3 You are a summer intem at the office of a local tax preparer. To test your basic knowledge of financial statements, your manager gives you the following list of account E 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 $1.16 per share with 4.24 million shares outstanding, calculate EPS and additions to retained earnings. Less: Operating expenses 3. 4. 5 6. $ Total operating expense Operating profits (EBIT) $ 7 Net profits before taxes $ 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 accou and asks you to prepare a simple income statement using those accounts. 1. 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 $1.16 per share with 4.24 million shares outstanding, calculato EPS and additions to retained eamings. 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 Lens:Tuxen (35%) Net profits after taxes c. The firm's EPS is $(Round to the nearest cent.) The firm's additions to retained earnings are $ million (Round to two decimal places.) (Click the icon here in order to copy the contents of the data table below into a spreadsheet.) Accounts Depreciation expense General and administrative expenses Sales Sales expenses Cost of goods sold Lease expense Interest expense ($000,000) 25.14 22.82 344.21 17.29 255.29 4.86 3.21
