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Prepare an income statement for Virginia Slim Wear. Take your calculations all the way to computing...

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Prepare an income statement for Virginia Slim Wear. Take yourcalculations all the way to computing earnings per share.(Round EPS answer to 2 decimal places.)
  

Sales$1,360,000
Sharesoutstanding104,000
Cost of goodssold700,000
Interestexpense34,000
Selling andadministrative expense49,000
Depreciationexpense23,000
Preferred stockdividends86,000
Taxes100,000

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Virginia Slim Wear

Income Statement for the year ----

Sales               1,360,000
Less: Cost of goods sold                  700,000
Gross profit                  660,000
Less: Selling & Administrative expenses                     49,000
Depreciation                     23,000
Earnings before interest & tax                  588,000
Less: Interest                     34,000
Income Before Income Tax (EBT)                  554,000
Less: Income Tax                  100,000
Profit after tax                  454,000
Less; Preference Dividend                     86,000
Profit available to equity shareholders                  368,000
Shares outstanding                  104,000
Earnings Per Share*                         3.54

*Earnings Per Share = Profit available to equity shareholders/Shares outstanding
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Transcribed Image Text

Prepare an income statement for Virginia Slim Wear. Take yourcalculations all the way to computing earnings per share.(Round EPS answer to 2 decimal places.)  Sales$1,360,000Sharesoutstanding104,000Cost of goodssold700,000Interestexpense34,000Selling andadministrative expense49,000Depreciationexpense23,000Preferred stockdividends86,000Taxes100,000

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