Question

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 Shares outstanding Cost of goods sold Interest expense Selling and administrative expense Depreciation expense Preferred stock dividends Taxes S1,300,000 108,000 660,000 22,000 42,000 30,000 80,000 117,000 Franklin Kite Company Income Statement 0 0 0 Earnings available to common stockholders S Shares outstanding Earnings per share 0

Answer 1

Please find below the answer... do provide rating..

	Income statement
	Sales	1300000
Less	Cost of goods sold	660,000
	Gross profit	640,000
Less	Selling and administrative expense	42,000
Less	Depreciation expense	30,000
	Earning before interest & Tax	568,000
Less	Interest expense	22,000
	Earning before tax	546,000
Less	Taxes	117,000
	Earning after tax	429,000
Less	Preferred stock dividends	80,000
	Earning available to common stockholders	349,000
	Shares outstanding	108,000
	Earning per share 349000/108000	3.23