Construct a 2013 P&L for a company with the following data and calculate eps: (NOTE: eps is NIAT “available to common shareholders” divided by share quantity.

Retained Earnings 12/31/12           $1,250,000

Retained earnings 12/31/13           1,600,000

A/R 12/31/13                              1,250,000 (60 days DSO)

Inventory 12/31/13                       1,500,000 (4 months-on-hand)

A/P 12/31/13                               562,500 (45 days)

Net Profit Margin                                  10%

Tax Rate                                               30%

Preferred Dividend 2013               $100,000

Common Dividend                       $300,000

Common Stock                               325,000 shares            

Complete all line items:

Sales

COGS

Gross Profit (GP)

GP%

Expenses

NIBT

Tax

NIAT

EPS

Answer rating: 100% (QA)

Sales Calculated using the net profit margin and GP Net Profit Margin 10 GP GP Sales x 100 Sales GP ... View the full answer