The following amounts were selected from the annual financial statements for Genesis Corporation at December 3 1 , 2005 (end of the third year of operations):

Required:
Analyze the data on the 2005 financial statements of Genesis by answering the questions that follow.
Show computations. 1. What was the gross margin on sales? 2. What was the amount of EPS? 3. If the income tax rate was 25 percent, what was the amount of pretax income? 4. What was the average sales price per share of the capital stock? 5. Assuming that no dividends were declared or paid during 2005, what was the beginning balance

(January 1, 2005) of retained earnings?

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From the 2005 income statement: Sales revenue $275.000 Cost of goods sold (170,000) All other expenses (including income tax) (95.000) Net income $10.000 From the December 31, 2005, balance sheet: Current assets 90.000 All other assets 212.000 Total assets Current liabilities Long-term liabilities Capital stock (par $10) 302.000 40.000 66,000 100,000