Prepare in good form an income statement for ATM Cards, Inc. Take your calculati
ID: 2666990 • Letter: P
Question
Prepare in good form an income statement for ATM Cards, Inc. Take your calculations all the way to computing earnings per share.Sales....................................................................................... $800,000
Shares outstanding................................................................... 100,000
Cost of goods sold.................................................................. 300,000
Interest expense....................................................................... 20,000
Selling and administrative expense............................................ 40,000
Depreciation expense............................................................... 30,000
Preferred stock dividends........................................................ 80,000
Taxes...................................................................................... 110,000
Explanation / Answer
ATM CARDS, INC.
Income Statement
For the Year Ended Unknown
1.
Sales...................................................................
$800,000
2.
Cost of goods sold...............................................
300,000
3.
Gross profits.....................................................
500,000
4.
Selling and administrative expense....................
40,000
5.
Depreciation expense.........................................
30,000
6.
Operating profit (EBIT)......................................
430,000
7.
Interest expense................................................
20,000
8.
Earnings before taxes (EBT)..............................
410,000
9.
Taxes..................................................................
110,000
10.
Earnings after taxes (EAT)...................................
300,000
11.
Preferred stock dividends...................................
80,000
12.
Earnings available to common stockholders........
220,000
13.
Common shares outstanding...............................
100,000
14.
Earnings per share..............................................
$2.20
ATM CARDS, INC.
Income Statement
For the Year Ended Unknown
1.
Sales...................................................................
$800,000
2.
Cost of goods sold...............................................
300,000
3.
Gross profits.....................................................
500,000
4.
Selling and administrative expense....................
40,000
5.
Depreciation expense.........................................
30,000
6.
Operating profit (EBIT)......................................
430,000
7.
Interest expense................................................
20,000
8.
Earnings before taxes (EBT)..............................
410,000
9.
Taxes..................................................................
110,000
10.
Earnings after taxes (EAT)...................................
300,000
11.
Preferred stock dividends...................................
80,000
12.
Earnings available to common stockholders........
220,000
13.
Common shares outstanding...............................
100,000
14.
Earnings per share..............................................
$2.20