Incomestatement3 - Interest expense 3,500 Depreciation...

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  Income statement Steps : 1) First Find Cost of Goods Sold which is Opening Inventory+Manufacturing expenses-Closing Inventory 2) Find Gross Profit= Sales-COGS 3) Find Net Profit= Gross Profit- Other expenses For year 20*1 Sales 85000 Lesss Cost of goods sold 50000 Gross profit 35000 Less Selling expenses 4000 7500 Operating profit $31,000 Less Depreciation 5000 Less Interest expense 3500 Net Profit before taxes $22,500 Less Taxes 9000 Net Profit after taxes $13,500 Less Preferred stock dividends 500 $13,000 2.6 $18,500 Note: EPS= Earnings available/Stock outstanding Cash flow from operations= Net profit after taxes + Depreciation Acme Auto has 5,000 shares of common stock outstanding. The company also has the following amounts in revenue and expense accounts.      Sales Revenue                              $85,000      General and Admin expense        7,500 
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Unformatted text preview: Interest expense 3,500 Depreciation expense 5,000 Preferred stock dividends 500 Selling expense 4,000 Cost of Goods Sold 50,000 Calculate: gross profit operating profit net profit before taxes net profit after taxes (assume 40% tax rate) cash flow from operations earnings available to common stockholders earnings per share Lesss General and Admin expense Earnings available to common stockholders Earnings per share Cash flow from operations...
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This note was uploaded on 12/10/2011 for the course MIS 102 taught by Professor Ss during the Spring '11 term at Fairleigh Dickinson.

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