1. Poku Manufacturing Inc. has sales returns of $100,000 and gross sales of $734,000 as of December...
Question:
1. Poku Manufacturing Inc. has sales returns of $100,000 and gross sales of $734,000 as ofDecember 31, 2022. The firm reports costs of $328,000, depreciation expense of $73,000, interestexpense of $38,000. The firm had a tax rate of 21 percent. Calculate Poku Manufacturing’s netincome as of December 31, 2022.
2 Suppose Poku Manufacturing announced as of December and paid out $68,000 in cash dividendsas of February 15, 2023. Calculate the firm’s addition to retained earnings.
3. Based on the above information gathered from Poku Manufacturing Inc., what would be theearnings per share (EPS) of the company assuming that the firm had 35,000 shares of commonstock outstanding? Also calculate the firm’s dividends per share based on the above information.
Federal Taxation 2018 Corporations, Partnerships, Estates & Trusts
ISBN: 9780134550923
31st Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson