Prepare an income statement for Virginia Slim Wear. Take your calculations all the way to computing...

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Prepare an income statement for Virginia Slim Wear. Take yourcalculations all the way to computing earnings per share.(Round EPS answer to 2 decimal places.)

Sales $ 1,360,000
Sharesoutstanding 104,000
Cost of goodssold 700,000
Interestexpense 34,000
Selling andadministrative expense 49,000
Depreciationexpense 23,000
Preferred stockdividends 86,000
Taxes 100,000

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Virginia Slim Wear

Income Statement for the year ----

Sales		1,360,000
Less:	Cost of goods sold	700,000
Gross profit		660,000
Less:	Selling & Administrative expenses	49,000
	Depreciation	23,000
*Earnings before interest & tax*		*588,000*
Less:	Interest	34,000
*Income Before Income Tax (EBT)*		*554,000*
Less: Income Tax		100,000
*Profit after tax*		*454,000*
Less; Preference Dividend		86,000
*Profit available to equity shareholders*		*368,000*
Shares outstanding		104,000
Earnings Per Share*		3.54

*Earnings Per Share = Profit available to equity shareholders/Shares outstanding

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Transcribed Image Text

Prepare an income statement for Virginia Slim Wear. Take yourcalculations all the way to computing earnings per share.(Round EPS answer to 2 decimal places.) Sales$1,360,000Sharesoutstanding104,000Cost of goodssold700,000Interestexpense34,000Selling andadministrative expense49,000Depreciationexpense23,000Preferred stockdividends86,000Taxes100,000


Sales	$	1,360,000
Sharesoutstanding		104,000
Cost of goodssold		700,000
Interestexpense		34,000
Selling andadministrative expense		49,000
Depreciationexpense		23,000
Preferred stockdividends		86,000
Taxes		100,000