Reliable Auto Parts has 5,000 shares of common stock outstanding. The company also has the...
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Reliable Auto Parts 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 administrative expense 7,500 Interest expense 3,500 Depreciation expense 5,000 Preferred stock dividends 500 Selling expense 4,000 Cost of goods sold 50,000 Calculate (a) gross profits. (b) operating profits. (c) net profits before taxes. (d) net profits after taxes (assume a 40 percent tax rate). (e) cash flow from operations. (f) earnings available to common stockholders. (g) earnings per share.
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