Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating income (or EBIT) Less: Interest expense Pre-tax income (or EBT) Less: Taxes (25%) Earnings after taxes Less: Preferred stock dividends Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings. Green Caterpillar Garden Supplies Inc. Income Statement for Year Ending December 31 Year 1 $10,000,000 8,000,000 400,000 $1,600,000 160,000 1,440,000 360,000 $1,080,000 300,000 780,000 486,000 $294,000 Year 2 (Forecasted) $ 400,000 $ TOU $ $436,312
Net sales Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating income (or EBIT) Less: Interest expense Pre-tax income (or EBT) Less: Taxes (25%) Earnings after taxes Less: Preferred stock dividends Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings. Green Caterpillar Garden Supplies Inc. Income Statement for Year Ending December 31 Year 1 $10,000,000 8,000,000 400,000 $1,600,000 160,000 1,440,000 360,000 $1,080,000 300,000 780,000 486,000 $294,000 Year 2 (Forecasted) $ 400,000 $ TOU $ $436,312
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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