Quantum Technology had $669,000 of retained earnings on December 31, 20X2. The company paid common dividends of $35,500 in 20X2 and had retained earnings of $576,000 on December 31, 20X1. How much did Quantum Technology earn during 20X2, and what would earnings per share be if 47,400 shares of common stock were outstanding?
The net earnings of the company during 20X2 was $128,500, and the earnings per share would be $2.71.
Closing retained earning-Opening retained earning+Dividend paid
Dr. Zhivàgo Diagnostics Corp.’s income statement for 20X1 is as follows
|Cost of goods sold||1790000|
|Gross profits||$ 1000000|
|Selling and administrative expenses||302000|
|Operating profits||$ 698000|
|Income before tax||$ 643200|
|Income after tax||$ 450240|
b. Assume that in 20X2, sales increase by 10 percent and cost of goods sold increases by 20 percent. The firm is able to keep all other expenses the same. Assume a tax rate of 30 percent on income before taxes. What is income after taxes and the profit margin for 20X2?
Classify the following balance sheet items as current or noncurrent:
Accrued wages payable
Plant and equipment
Capital in excess of par
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