I need Help with this INCOME STATEMENT pls Thank you! 1. SALES $ 7,625,000 2. CO
ID: 2328574 • Letter: I
Question
I need Help with this INCOME STATEMENT pls Thank you!
1. SALES
$ 7,625,000
2. COST OF GOODS SOLD
$ 4,420,000
3. GROSS PROFIT
$ ???
4. SELLING & ADMINISTRATIVE X
$ 1,465,780
5. DEPRECIATION EXPENSE
$ 320,000
6. OPERATING PROFIT (EBIT)
$ ?????
7. INTEREST EXPENSE
$ 325,000
8. EARNINGS BEFORE TAXES (EBT)
$ ????
9. TAXES
$ 556,987
10. EARNINGS AFTER TAXES (EAT)
$ ????
11. PREFERRED STOCK DIVIDENDS
$ 280,000
12. EARNINGS AVAILABLE TO
COMMON STOCKHOLDERS
$ ????
13. COMMON SHARES OUTSTANDING
200000
14. EARNINGS PER SHARE (EPS)
$ ????
I need Help with this INCOME STATEMENT pls Thank you!
1. SALES
$ 7,625,000
2. COST OF GOODS SOLD
$ 4,420,000
3. GROSS PROFIT
$ ???
4. SELLING & ADMINISTRATIVE X
$ 1,465,780
5. DEPRECIATION EXPENSE
$ 320,000
6. OPERATING PROFIT (EBIT)
$ ?????
7. INTEREST EXPENSE
$ 325,000
8. EARNINGS BEFORE TAXES (EBT)
$ ????
9. TAXES
$ 556,987
10. EARNINGS AFTER TAXES (EAT)
$ ????
11. PREFERRED STOCK DIVIDENDS
$ 280,000
12. EARNINGS AVAILABLE TO
COMMON STOCKHOLDERS
$ ????
13. COMMON SHARES OUTSTANDING
200000
14. EARNINGS PER SHARE (EPS)
$ ????
Explanation / Answer
Income Statement
Sales
$ 7,625,000.00
Cost of Goods Sold
$ 4,420,000.00
Gross Profit
$ 3,205,000.00
Operating Expenses
Selling and Administrative expenses
$ 1,465,780.00
Depreciation Expense
$ 320,000.00
Total Operating Expenses
$ 1,785,780.00
Operating Profit (EBIT)
$ 1,419,220.00
Interest Expense
$ 325,000.00
Earnings Before Taxes (EBT)
$ 1,094,220.00
Taxes
$ 556,987.00
Earnings After Taxes (EAT)
$ 537,233.00
Preferred Stock Dividends
$ 280,000.00
Earnings Available to Common Stockholders
$ 257,233.00*
Common Shares Outstanding
200000
Earnings Per Share (EPS)
$ 1.29 **
*EAT minus Preferred stock Dividends
** 257233/200000.
Income Statement
Sales
$ 7,625,000.00
Cost of Goods Sold
$ 4,420,000.00
Gross Profit
$ 3,205,000.00
Operating Expenses
Selling and Administrative expenses
$ 1,465,780.00
Depreciation Expense
$ 320,000.00
Total Operating Expenses
$ 1,785,780.00
Operating Profit (EBIT)
$ 1,419,220.00
Interest Expense
$ 325,000.00
Earnings Before Taxes (EBT)
$ 1,094,220.00
Taxes
$ 556,987.00
Earnings After Taxes (EAT)
$ 537,233.00
Preferred Stock Dividends
$ 280,000.00
Earnings Available to Common Stockholders
$ 257,233.00*
Common Shares Outstanding
200000
Earnings Per Share (EPS)
$ 1.29 **
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.