The Following Income Statement Was Reported for Bauer Inc

Essay

The following income statement was reported for Bauer Inc. for the first year of operations ending December 31, 2016 reported (in thousands of dollars):
Sales revenue
$24,500
Expenses:
Cost of sales
$12,100
Wages
5,300
Rent
900
Utilities
500
Miscellaneous
600
Total expenses
19,400
Income before taxes
5,100
Income tax expense
1,785
Net income
$3,315
Required:
A.Calculate net profit margin.
B.Calculate earnings per share if there are 200,000 weighted average shares of common stock outstanding.