if the income tax rate was 25 what was the amount of pretax income 555513
Using Financial Reports: Financial Statement Inferences – The following amounts were selected from the annual financial statements for Genes is Corporation at December 31, 2012 (end of the third year of operations):
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From the 2012 income statement: Don't use plagiarized sources. Get Your Custom Essay on
if the income tax rate was 25 what was the amount of pretax income 555513
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Sales revenue |
$275,000 |
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Cost of goods sold |
-170,000 |
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All other expenses (including income tax) |
-95,000 |
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Net income |
$10,000 |
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From the December 31, 2012, balance sheet: |
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Current assets |
$90,000 |
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All other assets |
212,000 |
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Total assets |
$302,000 |
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Current liabilities |
$40,000 |
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Long-term liabilities |
66,000 |
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Capital stock (par $10) |
100,000 |
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Paid-in capital |
16,000 |
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Retained earnings |
80,000 |
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Total liabilities and stockholders’ equity |
$302,000 |
Required:
Analyze the data on the 2012 financial statements of Genesis by answering the questions that follow. Show computations.
1. What was the gross margin on sales?
2. What was the amount of EPS?
3. If the income tax rate was 25%, what was the amount of pretax income?
4. What was the average sales price per share of the capital stock?
5. Assuming that no dividends were declared or paid during 2012, what was the beginning balance (January 1, 2012) of retained earnings?
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