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Last​ year, Stevens Inc. had sales of​$404 comma 000 with a cost of goods sold of...

Last​ year, Stevens Inc. had sales of​$404 comma 000 with a cost of goods sold of $120 comma 000. The​ firm's operating expenses were $129 comma 000 and its increase in retained earnings was ​$60 comma 000. There are currently 23 comma 000 common stock shares outstanding and the firm pays a $1.59 dividend per share.

a. Assuming the​ firm's earnings are taxed at 34 ​percent, construct the​ firm's income statement.

b. Compute the​ firm's operating profit margin.

c. What was the times interest​ earned?

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Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

DIVIDEND PAID = 1.59 X 23000 = 36570

jeff jeffy answered 11 months ago
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