and asks you to prepare a simple income statement using those accounts. You are a summer intern at the office of a local tax preparer. To test your basic knowledge of financial statements, your manager gives you the following list of accounts a. Arrange the accounts into a well-labeled income statement. Make sure you label and solve for gross profits, operating profits, and net profits before taxes. b. Using a 35% tax rate, calculate taxes paid and net profits after taxes. c. Assuming a dividend of $1.15 per share with 4.18 million shares outstanding, calculate EPS and additions to retained earnings. a. Complete the income statement, down to the net profits before taxes line, below: (Select the account names from the drop-down menus and round the amounts to two decimal places.) Name of Company Income Statement ($000,000) 1. 2. $ Gross profits Less: Operating expenses 3. 4. III 5. 6. Total operating expense $ Operating profits (EBIT) 7. Net profits before taxes $ and asks you to prepare a simple income statement using those accounts. You are a summer intern at the office of a local tax preparer. To test your basic knowledge of financial statements, your manager gives you the following list of accounts a. Arrange the accounts into a well-labeled income statement. Make sure you label and solve for gross profits, operating profits, and net profits before taxes. b. Using a 35% tax rate, calculate taxes paid and net profits after taxes. c. Assuming a dividend of $1.15 per share with 4.18 million shares outstanding, calculate EPS and additions to retained earnings. a. Complete the income statement, down to the net profits before taxes line, below: (Select the account names from the drop-down menus and round the amounts to two decimal places.) Name of Company Income Statement ($000,000) 1. 2. $ Gross profits Less: Operating expenses 3. 4. III 5. 6. Total operating expense $ Operating profits (EBIT) 7. Net profits before taxes $