Computing the Dividend Yield and the Dividend Payout Ratio The income statement, statement of retained earnings, and balance sheet for Jeanette Company are as follows. Jeanette Company Income Statement For the Year Ended December 31, 20X2 Net sales Less: Cost of goods sold Gross margin Less: Operating expenses Operating income Less: Interest expense Income before taxes Less: Income taxes (40%)* Net income * Includes both state and federal taxes. Jeanette Company Statement of Retained Earnings For the Year Ended December 31, 20X2 Amount Percent $8,281,989 100.0% (5,383,293) 65.0 $2,898,696 35.0 (1,323,368) 16.0 $1,575,328 19.0 (50,000) 0.6 $1,525,328 18.4 (610,131) 7.4 $915,197 11.0 Balance, beginning of period $1,979,155 Net income 915,197 Total $2,894,352 Preferred dividends (80,000) Dividends to common stockholders (201,887) Balance, end of period $2,612,465