(Evaluating profitability) Last year, Stevens Inc. had sales of $396,000, with a cost of goods sold...

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(Evaluating profitability) Last year, Stevens Inc. had sales of $396,000, with a cost of goods sold of $116,000. The firm's operating expenses were $125,000, and its share. increase in retained earnings was $50,000. There are currently 22,100 common stock shares outstanding and the firm pays a $1.65 dividend per a. Assuming the firm's earnings are taxed at 21 percent, construct the firm's income statement. b. Compute the firm's operating profit margin. c. What was the times interest earned? a. Assuming the firm's earnings are taxed at 21 percent, construct the firm's income statement. (Round to the nearest dollar. NOTE: You may input expense accounts as negative values.) Stevens Inc. Income Statement Sales Cost of goods sold Gross profits Operating expenses Operating profits Interest expense Earnings before taxes Income taxes Net income $ 396,000 -116,000 280,000 -125,000 155,000 -32,550 86,465 K (Evaluating profitability) Last year, Stevens Inc. had sales of $396,000, with a cost of goods sold of $116,000. The firm's operating expenses were $125,000, and its share. increase in retained earnings was $50,000. There are currently 22,100 common stock shares outstanding and the firm pays a $1.65 dividend per a. Assuming the firm's earnings are taxed at 21 percent, construct the firm's income statement. b. Compute the firm's operating profit margin. c. What was the times interest earned? a. Assuming the firm's earnings are taxed at 21 percent, construct the firm's income statement. (Round to the nearest dollar. NOTE: You may input expense accounts as negative values.) Stevens Inc. Income Statement Sales Cost of goods sold Gross profits Operating expenses Operating profits Interest expense Earnings before taxes Income taxes Net income $ 396,000 -116,000 280,000 -125,000 155,000 -32,550 86,465 K

Answer rating: 100% (QA)

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