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The following selected information is taken from the records of Beckstrom Corporation.
Accounts payable$ 35,000
Accounts receivable65,000
Advertising expense15,000
Cash19,500
Supplies expense46,000
Rent expense10,000
Utilities expense3,000
Income taxes (30% of income before taxes)?
Miscellaneous expense4,400
Owners' equity140,000
Salaries expense61,000
Fees (revenues)384,000
1. Prepare an income statement for the year ended December 31, 2006. (Assume that 7,500 shares of stock are outstanding.)
2. Explain what the EPS ratio tells the reader about Beckstrom Corporation.
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