In 2019, Hexafun, Inc., had sales of $530,000, costs of $325,000, depreciation expense of $70,000, and...

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In 2019, Hexafun, Inc., had sales of $530,000, costs of $325,000, depreciation expense of $70,000, and interest expense of $40,000. Assume a tax rate of 21%. Answer the following: A. Prepare a ("simplified") Income Statement to calculate the company's net income for 2019. B. Suppose the firm paid out $35,000 in cash dividends in 2019. What was the addition to retained earnings? C. Suppose the firm had 25,000 shares of common stock outstanding in 2019: C.1. What was the company's Earnings per Share (EPS) for 2019? C.2. What was the company's Dividends per Share (DPS) for 2019? D. Briefly interpret the idea behind Net Income by answering the following: D.1. What does it represent/measure? D.2. Does it provide a complete measure of a firm's value? Why? D.3. How is Net Income different from Economic Profit? Part A Hexafun, Inc. 2019 Net Income Sales Costs Gross Profit Depreciation Expense EBIT Interest Expense EBT Tax Expense Net Income Part B Cash Dividends Addition to R.E. Part C # Shares Outstanding EPS DPS In 2019, Hexafun, Inc., had sales of $530,000, costs of $325,000, depreciation expense of $70,000, and interest expense of $40,000. Assume a tax rate of 21%. Answer the following: A. Prepare a ("simplified") Income Statement to calculate the company's net income for 2019. B. Suppose the firm paid out $35,000 in cash dividends in 2019. What was the addition to retained earnings? C. Suppose the firm had 25,000 shares of common stock outstanding in 2019: C.1. What was the company's Earnings per Share (EPS) for 2019? C.2. What was the company's Dividends per Share (DPS) for 2019? D. Briefly interpret the idea behind Net Income by answering the following: D.1. What does it represent/measure? D.2. Does it provide a complete measure of a firm's value? Why? D.3. How is Net Income different from Economic Profit? Part A Hexafun, Inc. 2019 Net Income Sales Costs Gross Profit Depreciation Expense EBIT Interest Expense EBT Tax Expense Net Income Part B Cash Dividends Addition to R.E. Part C # Shares Outstanding EPS DPS

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A Hexafun Inc 2019 Net income Particulars Amount S 530000 S 3... View the full answer