The following amounts were selected from the annual financial statements for Genesis Corporation at December 31, 2015 (end of the third year of operations):

Required:
Analyze the data on the 2015 financial statements of Genesis by answering the questions that follow. Show computations.
1. What was the gross margin on sales?
2. What was the amount of earnings per share?
3. If the income tax rate was 25 percent, what was the amount of pretax earnings?
4. What was the average issuance price per common share?
5. Assuming that no dividends were declared or paid during 2015, what was the beginning balance (January 1, 2015) of retained earnings?

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From the 2015 statement of earnings Sales revenue Cost of sales All other expenses (including income tax) $275.000 (170,000) Net earnings 10,000 $ 90,000 202,000 From the December 31, 2015, statement of financial position: Current assets All other assets Total assets Current liabilities Non-current liabilities Common shares Contributed surplus Retained earnings 66,000 100,000 16,000 0,000 $ 302,000 Total fabilities and shareholders' equity 10,000 shares issued and outstanding thoughout the year