Last year the P. M. Postem Corporation had sales of $426, 000, with a cost of goods sold of $113,000. The firm's operating expenses were $130,000, and its increase in retained earnings was $84, 720. There are currently 21,000 shares of common stock outstanding, the firm pays a $1.63 dividend per share, and the firm has no interest-bearing debt. a. Assuming the firm's earnings are taxed at 35 percent, construct the firm's income statement. b. Compute the firm's operating profit margin. Question content area bottom Part 1 a. Training Assuming the firm's earnings are taxed at 35%, construct the firm's income statement. Complete the income statement below: (Round to the nearest dollar.) Income Statement Revenues $ Cost of Goods Sold Gross Profit $ Operating Expenses Net Operating Income $ Interest Expense Earnings before Taxes $ Income Taxes Net Income $
Last year the P. M. Postem Corporation had
sales of $426, 000, with a cost of goods sold of $113,000. The firm's operating expenses were $130,000, and its increase in
Training
Assuming the firm's earnings are taxed at 35%, construct the firm's income statement. Complete the income statement below: (Round to the nearest dollar.) Income Statement Revenues $ Cost of Goods Sold Gross Profit $ Operating Expenses Net Operating Income $ Interest Expense Earnings before Taxes $ Income Taxes
Net Income $
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