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The following information is available for Patel Corporation for the year ended December 31, 2010: Sales $800,000; Other revenues and gains $92,000; Operating expenses $110,000; Cost of goods sold $465,000; Other expenses and losses $32,000; Preferred stock dividends $30,000.The company's tax rate was 20%, and it had 50,000 shares outstanding during the entire year.
Instructions
(a) Prepare a corporate income statement.
(b) Calculate earnings per share.
What do these ratios show in relation to the company's profitability and financial stability?
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