The Following Statement of Earnings Was Reported for Cotrell Inc

Essay

The following statement of earnings was reported for Cotrell Inc. for the first year of operations ending December 31, 20X2, reported in thousands of dollars: $\begin{array}{|l|r|r|}\hline \text { Sales revenue } & & \$ 10,600 \\\hline \text { Expenses: } & & \\\hline \text { Cost of Sales } & \$ 4,200 & \\\hline \text { Salaries and Wages } & 2,100 & \\\hline \text { Rent } & 1,400 & \\\hline \text { Utilities } & 800 & \\\hline \text { Miscellaneous } & 1,100 & \\\hline \text { Total Expenses } & & 9,600 \\\hline \text { Income before taxes } & & 1,000 \\\hline \text { Income tax expense } & &250 \\\hline \text { Profit } & & \$ 50 \\\hline\end{array}$
Calculate the following: (a) net profit margin (b) earnings per share if there are 100 ,000 shares outstanding