Compute the? firms operating profit margin

Reference no: EM133608420

Case: Last year the P. M. Postem Corporation had sales of $ 409,000?, with a cost of goods sold of $ 110,000. The? firm's operating expenses were $126,000?, and its increase in retained earnings was $80,650. There are currently 20,000 shares of common stock? outstanding, the firm pays a $1.59 dividend per? share, and the firm has no? interest-bearing debt.

Question 1: Assuming the? firm's earnings are taxed at 35 ?percent, construct the? firm's income statement.

Question 2: Compute the? firm's operating profit margin.

Reference no: EM133608420

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