Problem 1 - 30 points
	Use the following information to complete the income statement for Company A for the year ending December 31, 2013 (show work):
	Income Statement Information
	Revenue	############
	Gross Margin	40.0%
	Selling General and Administrative (SG&A)	21.0%	of revenue
	Research and Development (R&D)	12.0%	of revenue
	Depreciation expense (D&A)	$ 5,000,000
	Interest Expense	$ 5,000,000
	Interest Income	$ 2,500,000
	Tax Rate	35%
	Securities Information
	Weighted Average Shares (12/31/13)	10,000,000
	A Warrants exercisable @ $2.00	2,200,000
	B Warrants exercisable @ $3.00	2,500,000
	Stock Price (12/31/13)	$ 4.00
	Complete the following Income Statement
	Answers go in the yellow boxes		Points
	Revenue	############			$ 115,000,000
	Cost of Goods Sold		1
	Gross Profit		1
	Operating Expenses
	SG&A		1
	R&D		1
	D&A
	Operating Expenses Total		1
	Operating Income		5
	Interest Expense, net		1
	Pre Tax Income		1
	Tax		1
	Net Income		2
	EPS Basic		5
	EPS Diluted		10
		Total Points	30
	Use this table (below) to help with your calculations
	Diluted Share Calculations
	Basic
	A warrants
	B warrants
	Total
	Proceeds
	A warrants
	B warrants
	Total Proceeds
	Shares repurchased
	Diluted shares used to calculate Diluted EPS
	Total Score	60