Question: Question 1 : ( 4 + 2 + 4 = 1 0 ) marks You are a summer intern at the office of

Question 1: \(4+2+4=10\) marks You are a summer intern at the office of a local tax preparer. To test your basic knowledge of financial statements, your manager, who graduated from your alma mater 2 years ago, gives you the following list of accounts and asks you to prepare a simple income statement using those accounts. 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 \(\$ 1.10\) per share with 4.25 million shares outstanding, calculate EPS and additions to retained earnings.
Question 1 : \ ( 4 + 2 + 4 = 1 0 \ ) marks You

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