You are a summer intern at the office of a local tax preparer. To test...
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Accounting
You are a summer intern at the office of a local tax preparer. To test your basic knowledge of financial statements, your manager gives you the following list of accounts and asks you to prepare a simple income statement using those accounts. a. Arrange the accounts into a well-labeled income statement. Make sure you label and solve for gross profits, operating profits, and net profits before taxes. b. Using a 35% tax rate, calculate taxes paid and net profits after taxes. c. Assuming a dividend of $1.01 per share with 4.16 million shares outstanding, calculate EPS and additions to retained earnings. a. Complete the income statement, down to the net profits before taxes line, below: (Select the account names from the drop-down menus and round the amounts to two decimal places.)
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