Reference no: EM131110671
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.
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 $1.10 per share with 4.25 million shares outstanding, calculate EPS and additions to retained earnings.
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Find the equations of the indicated tangent or normal lines
: Find the equations of the indicated tangent or normal lines.
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Elbert corporation had net cash provided
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What exactly does the word balance mean
: Explain why the income statement can also be called a “profit-and-loss statement.” What exactly does the word balance mean in the title of the balance sheet? Why do we balance the two halves?
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Find the equations of the indicated tangent or normal lines
: Find the equations of the indicated tangent or normal lines.
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Calculate eps and additions to retained earnings
: 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. Using a 35% tax rate, calculate taxes paid and net profit after taxes. Assuming a dividend of $1..
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Moxley corporation had january 1 and december 31
: Moxley Corporation had January 1 and December 31 balances as follows. For 2010, cost of goods sold was $500,000. Compute Moxley’s 2010 cash payments tosuppliers.
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Reexamination of patterns of development
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What three areas of analysis are combined
: What three areas of analysis are combined in the modified DuPont formula? Explain how the DuPont system of analysis is used to dissect the firm’s results and isolate their causes.
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Describe how you would use a large number of ratios
: Describe how you would use a large number of ratios to perform a complete ratio analysis of the firm.
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