Profitability analysis) Last year the P. M. Postem Corporation had sales of $438,000, with a cost of goods sold of $114,000. Thefirm's operating expenses were $127,000, and its increase in retained earnings was $93,820. There are currently 21,000 shares of common stock outstanding, the firm pays a $1.63 dividend pershare, and the firm has no interest-bearing debt.
a. Assuming the firm's earnings are taxed at 35 percent, construct the firm's income statement.
b. Compute the firm's operating profit margin.
