Accounts ($000,000)
Depreciation expense 24.96
General and administrative expense 21.09
Sales 344.08
Sales expenses 17.93
Cost of goods sold 225.26
Lease expense 3.93
Interest expense 3.32
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.
a. Arrange the accounts into a well-labeled income statement. Make sure you label and solve for gross profits, operating profits, and net profits before taxes.
b. Using a 35% tax rate, calculate taxes paid and net profits after taxes.
c. Assuming a dividend of $1.16 per share with 4.19 million shares outstanding, calculate EPS and additions to retained earnings.
