Question

Last year the P. M. Postem Corporation had sales of $400,000, with a cost of goods sold of $112,000. The firm’s operating expenses were $130,000, and its increase in retained earnings was $58,000. There are currently 22,000 shares of common stock outstanding, the firm pays a $1.60 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.



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  • CreatedOctober 31, 2014
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