Zombies, Inc. is a R&D company that has created a new life restoring elixir. Would I kid you? They have even come up with a marketing slogan, "You just think they're dead!" OK, this has absolutely nothing to do with this problem I just thought I'd throw it in. Anyway, you have been tasked with preparing Zombies current Income Statement. You are down to the lines "tax" and "net profit after tax" and therefore need to calculate Zombies federal tax. The current federal tax rate on corporations is 21%. Here's the data you have been working with: Sales: $1,400,000; cost of goods sold: $845,000; G&A: $300,000; advertising: $75,000. Zombies took out a $120,000 loan this year and paid $12,000 in loan interest. Their capital structure includes both preferred and common stock and they paid $10,000 and $15,000 respectively in dividends.

Given all that I need you to tell me three things: what was their Gross Profit (2 points), what was their operating profit (2 points), and what was their federal tax bill? (6 points)