Question

Prepare an income statement for Franklin Kite Co. Take your calculations all the way to computing...

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.)
  

Sales $ 1,110,000
Shares outstanding 186,000
Cost of goods sold 550,000
Interest expense 25,000
Selling and administrative expense 42,000
Depreciation expense 39,000
Preferred stock dividends 84,000
Taxes 112,000


Homework Answers

Answer #1

Income Statement of Franklin Kite Co.

Particulars Amount (in $)
Sales 1110000
Less: Cost of Goods Sold (550000)
Gross Profit 560000
Less : Selling and administrative expense (42000)
Less : Depreciation (39000)
Operating Profit 479000
Less: Interest Expense (25000)
Earnings before tax 454000
Less : Taxes (112000)
Earnings after tax 342000
Less: Preferred Stock Dividend (84000)
Earnings available to Equity Shareholders (A) 258000
Shares Outstanding (B) 186000
Earnings Per Share (A / B) 1.39
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