(Related to Checkpoint 4.3) (Profitability analysis) Last year the P. M. Postem Corporation had sales of $434,000, with a cost of goods sold of $113,000. The firm's operating expenses were $126,000, and its increase in retained earnings was $92,100. There are currently 21,000 shares of common stock outstanding, the firm pays a $1.65 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.
(Related to Checkpoint 4.3) (Profitability analysis) Last year the P. M. Postem Corporation had sales of $434,000, with a cost of goods sold of $113,000. The firm's operating expenses were $126,000, and its increase in retained earnings was $92,100. There are currently 21,000 shares of common stock outstanding, the firm pays a $1.65 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.
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
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