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Last year the P. M. Postem Corporation had sales of $435,000?, with a cost of goods sold of $114,000. The? firm's operating expenses were $129,000?, and its increase in retained earnings was $92,200. There are currently 20,000 shares of common stock? outstanding, the firm pays a $1.63 dividend per? share, and the firm has no? interest-bearing debt.
Problem 1: Assuming the? firm's earnings are taxed at 35 ?percent, construct the? firm's income statement.
Problem 2: Compute the? firm's operating profit margin.
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