20X1 20X2

Earning after taxes $ 420,000.00 $ 546,000.00

Shares outsanding 309,000 329,000
Earning per share $ 1.36 $ 1.66

Answers:
a. $1.36
b. $1.66
 20X1 20X2
Earning after taxes $ 800,000.00 $ 1,040,000.00
Shares outsanding 200,000 250,000
Earning per share $ 4.00 $ 4.16

Answers:
a. $4.00
b. $4.16
Sales $ 383,000.00
Cost of goods sold $ 260,000.00
Gross profit $ 123,000.00
Gross profit margin 32.11%

Answers:
a. $123,000.00 32.11%

b. The gross profit margin of the company is higher than

the avarage industry gross profit of 25%. So the company
is outperforming.
Sales $ 2,500,000.00
Cost of goods sold $ 1,710,000.00
Selling and administrative expenses $ 250,000.00
Assets $ 4,680,000.00
Depreciation expenses $ 280,800.00
Operating profit $ 259,200.00

Answer:
Operating profit: $259,200.00
 Income statement
1 Sales
2 Cost of goods sold
3 Gross profit
4 Selling and administrative expenses
5 Depreciation expenses
6 Operating profit
7 Interest expenses
8 Earnings before taxes
9 Taxes
10 Earnings after taxes
11 Preferred stock dividends
12 Earnings available to common stockholders
13 Shares outstanding
14 Earnings per share
 Dental Driling Company
Income statement
1 Sales $ 489,000.00
2 Cost of goods sold $ 156,000.00
3 Gross profit $ 333,000.00
4 Selling and administrative expenses $ 112.00
5 Depreciation expenses $ 73,000.00
6 Operating profit $ 259,888.00
7 Interest expenses $ 45,000.00
8 Earnings before taxes $ 214,888.00
9 Taxes $ 47,000.00
10 Earnings after taxes $ 167,888.00