The following income statement was reported for Bauer Inc. for the first year of operations ending December 31, 2016 reported (in thousands of dollars):
Sales revenue
$24,500
Expenses:
Cost of sales
$12,100
Wages
5,300
Rent
900
Utilities
500
Miscellaneous
600
Total expenses
19,400
Income before taxes
5,100
Income tax expense
1,785
Net income
$3,315
Required:
A.Calculate net profit margin.
B.Calculate earnings per share if there are 200,000 weighted average shares of common stock outstanding.

Question

Quizplus · Accepted Answer

The Answer of The following income statement was reported for Bauer Inc. for the first year of operations ending December 31, 2016 reported (in thousands of dollars):
Sales revenue
$24,500
Expenses:
Cost of sales
$12,100
Wages
5,300
Rent
900
Utilities
500
Miscellaneous
600
Total expenses
19,400
Income before taxes
5,100
Income tax expense
1,785
Net income
$3,315
Required:
A.Calculate net profit margin.
B.Calculate earnings per share if there are 200,000 weighted average shares of common stock outstanding.

The Following Income Statement Was Reported for Bauer Inc