Question

The following data (dollar amounts in millions) are from the financial statements of Valley Corporation:
Average stockholders’ equity.............................. $5,400
Interest expense................................................... $ 800
Operating income as a percent of sales................ 25%
Rate of return on stockholders’ equity................ 10%
Income tax rate................................................... 40%

Requirement
1. Complete the following condensed income statement. Report amounts to the nearest million dollars.
Sales....................................... ________
Operating expense.................. ________
Operating income................... ________
Interest expense...................... ________
Pretax income ........................ ________
Income tax expense................ ________
Net income............................. ________



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  • CreatedJuly 25, 2014
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