Last year the P.M. Postem corporation had sales of $419,000, with a cost of goods sold of $111,000. The firm’s operating expenses were $126,000, and its increase in retained earnings was $85,700. There are currently 20,000 shares of common stock outstanding, the firm’s pays a $1.63 dividend per share, and the firm has no interest-bearing debt. A. Assuming the firm’s earnings are taxed at 35%, construct the firm’s income statement. Complete the income statement below: round to the nearest dollar Revenues Cost of goods sold Gross profit Operating expenses Net operating income Interest expenses Earnings before taxes Income taxes Net income

Last year the P.M. Postem corporation had sales of $419,000, with a cost of goods sold of $111,000. The firm’s operating expenses were $126,000, and its increase in retained earnings was $85,700. There are currently 20,000 shares of common stock outstanding, the firm’s pays a $1.63 dividend per share, and the firm has no interest-bearing debt. A. Assuming the firm’s earnings are taxed at 35%, construct the firm’s income statement. Complete the income statement below: round to the nearest dollar Revenues Cost of goods sold Gross profit Operating expenses Net operating income Interest expenses Earnings before taxes Income taxes Net income

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter15: Dividend Policy

Section: Chapter Questions

Problem 13P

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Last year the P. M. Postem Corporation had sales of $426, 000, with a cost of goods sold of $113,000. The firm's operating expenses were $130,000, and its increase in retained earnings was $84, 720. There are currently 21,000 shares of common stock outstanding, the firm pays a $1.63 dividend per share, and the firm has no interest-bearing debt. a. Assuming the firm's earnings are taxed at 35 percent, construct the firm's income statement. b. Compute the firm's operating profit margin. Question content area bottom Part 1 a. Training Assuming the firm's earnings are taxed at 35%, construct the firm's income statement. Complete the income statement below: (Round to the nearest dollar.) Income Statement Revenues $ Cost of Goods Sold Gross Profit $ Operating Expenses Net Operating Income $ Interest Expense Earnings before Taxes $ Income Taxes Net Income $
Last year the P.M. postem corporation had sales of $419,000, with a cost of goods sold of $111,000. The firm’s operating expenses were $126,000, and its increase in retained earnings was $85,700. There are currently 20,000 shares of common stock outstanding, the firm’s pays a $1.63 dividend per share, and the firms has no interest-bearing debt. B. Compute the firm’s operating profit margin The operating profit margin is Round to one decimal place.
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