Transcribed Image Text
(Evaluating profitability?) Last? year, Stevens Inc. had salesof ?$398,000?, with a cost of goods sold of ?$110,000. The? firm'soperating expenses were $134,000?, and its increase in retainedearnings was ?$57,000. There are currently 21,800 common stockshares outstanding and the firm pays a ?$1.61 dividend pershare.a. Assuming the? firm's earnings are taxed at 34 ?percent,construct the? firm's income statement.b. Compute the? firm's operating profit margin.c. What was the times interest? earned?a. Assuming the? firm's earnings are taxed at 34 ?percent,construct the? firm's income statement.???(Round to the nearestdollar.? NOTE: You may input expense accounts as negative?values.)Stevens Inc. Income StatementSales398000Costs of Good Sold110000Gross Profits288000Operating Expenses134000Operating Income (EBIT)Interest Expense______Earnings Before Taxes_____Sales______Net Income______