E5-10 A B C

Sales 800 600 500

Cost of Goods Sold (CGS)= 425 150 280
Gross Margin 375 450 220
Operating Expenses:
Selling Expense 50 50 80
Admin Expenses 125 100 70
Pretax Income 250 300 70
Tax 50 30 20
NET INCOME 200 270 50

for the year ending:

E5-8 Sales 85,000 64.70%
CGS 55,000 35.30%
Gross Revenue Profit 30,000
Operating Expenses:
Selling Expenses 7000
Admin Expenses 10,000
Total Operating Expense 17,000
Pretax Income 13,000 15.29%
Tax 35% 4,550
NET INCOME 8,450 0.09941176
EPS=NI/Share Price 2500
Profit Margin
D E P5-4
# Shares $
1170 760 BB 5,500 82,500
500 320 Issued Stock* 1,000 15,000
670 440 Net Income
Dividends
350 240 TOTAL 6,500 97,500
120 80
200 120
50 20
150 100
Adtl. PIC RE Total
13,000 44,000 139,500
20,000 35,000 *(DR Cash, $35,000; CR CS Par, $15,000, Adtl PIC,
37,000 37,000 $20,000)
-11,000
33,000 70,000 211,500
15,000, Adtl PIC,