(Related to Checkpoint 4.3) (Analyzing profitability) Last year, the P. M. Postem Corporation had sales of $447,000, with a cost of goods sold of $110,000. The firm's operating expenses were $129,000, and its increase in retained earnings was $131,920. There are currently 20,000 shares of common stock outstanding, the firm pays a $1.62 dividend per share, and the firm has no interest-bearing debt. a. Assuming the firm's earnings are taxed at 21 percent, construct the firm's income statement. b. Compute the firm's operating profit margin. a. Assuming the firm's earnings are taxed at 21%, 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
(Related to Checkpoint 4.3) (Analyzing profitability) Last year, the P. M. Postem Corporation had sales of $447,000, with a cost of goods sold of $110,000. The firm's operating expenses were $129,000, and its increase in retained earnings was $131,920. There are currently 20,000 shares of common stock outstanding, the firm pays a $1.62 dividend per share, and the firm has no interest-bearing debt. a. Assuming the firm's earnings are taxed at 21 percent, construct the firm's income statement. b. Compute the firm's operating profit margin. a. Assuming the firm's earnings are taxed at 21%, 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
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
am. 119.
Transcribed Image Text:(Related to Checkpoint 4.3) (Analyzing profitability) Last year, the P. M. Postem Corporation had sales of $447,000, with a cost of goods sold of
$110,000. The firm's operating expenses were $129,000, and its increase in retained earnings was $131,920. There are currently 20,000 shares of
common stock outstanding, the firm pays a $1.62 dividend per share, and the firm has no interest-bearing debt.
a. Assuming the firm's earnings are taxed at 21 percent, construct the firm's income statement.
b. Compute the firm's operating profit margin.
a. Assuming the firm's earnings are taxed at 21%, 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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