Question: Prepare a simple income statement using those accounts: Accounts ($000,000) Depreciation 25 General and Administrative Expenses 22 Sales 345 Sales Expenses 18 Cost of Goods
Prepare a simple income statement using those accounts: Accounts ($000,000) Depreciation 25 General and Administrative Expenses 22 Sales 345 Sales Expenses 18 Cost of Goods Sold 255 Lease Expense 4 Interest Expense 3 a. Arrange the accounts into a well-labeled income statement. Make sure you label and solve for gross profit, operating profit, and net profit before taxes. b. Using a 35% tax rate, calculate taxes paid and net profit after taxes. c. Assuming a dividend of $1.1 per share with 4.25 million shares outstanding, calculate EPS and additions to retained earnings.
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