Construct the firm income statement

Assignment Help Accounting Basics
Reference no: EM133104908

Question - Profitability analysis - Last year the P. M. Postem Corporation had sales of $433,000, with a cost of goods sold of $113,000. The firm's operating expenses were $126,000, and its increase in retained earnings was $88,610. There are currently 23,000 shares of common stock outstanding, the firm pays a $1.63 dividend per share, and the firm has no interest-bearing debt.

a. Assuming the firm's earnings are taxed at 35 percent, construct the firm's income statement.

b. Compute the firm's operating profit margin.

Reference no: EM133104908

Questions Cloud

What is the breakeven point in unit sales : What is the breakeven point in unit sales and dollars for each type of Bat at the current sales mix if the tax rate is 40%
What is the market share variance : Sales revenue was only BHD 9 per unit. It is realised that the budgeted sales units were too optimistic, What is the market share variance
Prepare a trial balance as at July : Prepare a trial balance as at 31 July 2021 - July 10 The company received cash $1,500 as fees for services provided to a customer
Describe key characteristics of enterprise systems : Describe key characteristics of Enterprise Systems and Explain the concept of ERP systems, including its evolution, components, and architecture
Construct the firm income statement : The firm pays a $1.63 dividend per share, and the firm has no interest-bearing debt. Construct the firm income statement
What the total financial income to be recognized : ABC leases an asset from XYZ, a lease financier, At XYZ's perspective, the total financial income to be recognized for the entire term of the lease is
Journalize the selected transactions for october : Journalize the following selected transactions for October 20Y2 in a two-column journal. Journal entry explanations may be omitted
Differentiate current liabilities to non-current liabilities : Define liabilities. What are the essential characteristics of an accounting liability? Differentiate current liabilities to non-current liabilities
Analyze each transaction and show the effect of each : Analyze each transaction and show the effect of each on the accounting equation for a corporation. Purchased inventory on account at a cost of $128,000

Reviews

Write a Review

Accounting Basics Questions & Answers

  What amount should Bramble report as its December inventory

Both the Timmons purchase and the Myers sale were in transit at year end. What amount should Bramble report as its December 31 inventory

  How much is the profit or loss of the joint operations

Inventory costing P 1,000 was sent by X to Y. If there is no separate books maintained for Joint Operations, how much is the profit or loss of Joint Operations

  Critique use of pro-forma earnings for financial statement

Explain why a high price-to-earnings ratio is crucial to Tyco's acquisitions strategy. Critique the use of pro-forma earnings for financial statement analysis

  Find net present value of modernize and replace alternatives

Dublin Chips uses straight-line depreciation, assuming zero terminal disposal value. For simplicity, we assume no change in prices or costs in future years.

  Assume the company uses a process costing system to

1. 360 property videos company is a service company that creates in-home videos for real estate agents to help

  Identify three industries likely to face environmental risk

Identify three industries that you consider as likely to face significant environmental risk

  What is the inventory turnover ratio

If beginning and ending inventories are $20,000 and $30,000, respectively, and cost of goods sold is $400,000, what is the inventory turnover ratio

  During the month of april macon co had cash receipts from

during the month of april macon co. had cash receipts from customers of 85000. expenses totaled 78000 and accural basis

  How to compute the gross profit to be recognised

How to compute the gross profit to be recognised for each of the three years, assuming that the outcome of the contract can be reliably estimated.

  What would be the amount of depreciation expense

Warren Company plans to depreciate a new building using the double declining-balance depreciation method. The building cost $830,000.

  Prepare the budgeted statement of comprehensive income

Prepare the budgeted statement of comprehensive income for the year ended 31 December 2016 using the absorption costing method

  Describe internally account

Alpha utilize any one of three methods to internally account for this method. Describe each of methods and indicate their advantages and disadvantages.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd