Prepare an income statement for Franklin Kite Co. Take your calculations all the
ID: 2801789 • Letter: P
Question
Prepare an income statement for Franklin Kite Co. Take your calculations all the way to computing earnings per share. (Round EPS answer to 2 decimal places.)
Gross profit=
operating profit=
earnings before taxes=
earning after taxes=
earnings available to common stockholders=
shares outstanding=
earnings per share=
Sales $ 1,680,000 Shares outstanding 181,000 Cost of goods sold 700,000 Interest expense 25,000 Selling and administrative expense 49,000 Depreciation expense 36,000 Preferred stock dividends 83,000 Taxes 116,000Gross profit=
operating profit=
earnings before taxes=
earning after taxes=
earnings available to common stockholders=
shares outstanding=
earnings per share=
Explanation / Answer
Sales 16,80,000 Shares outstanding 1,81,000 Cost of goods sold 7,00,000 Interest expense 25,000 Selling and administrative expense 49,000 Depreciation expense 36,000 Preferred stock dividends 83,000 Taxes 1,16,000 Gross Profit: Sales-COGS $ 9,80,000.00 Operating Profit: Gross Profit - Operating Expense $ 8,70,000.00 EBT $ 8,70,000.00 Earnings After Tax:Profit After Tax (PAT): Operating Profit - Taxes $ 7,54,000.00 Retained Profit: PAT-Devidend Paid $ 6,71,000.00 Earnings available to common Share $ 6,71,000.00 Share O/S $ 1,81,000.00 EPS $ 3.71