In the year just ended, MMM Inc. had sales of $6000 and incurred a cost of goods sold equal to $5500.
The firm's operating expenes were $160 and its increase in retained earnings was $30 for the year. There are currently 120 common shares outstanding and the firm pays $1.25 per share.
The firm has $800 in interest bearing debt ( Total liabilities) on which it pays 9% interest and total assets of $2000.
I. Assuming the firm's earnings are taxed at 30%, construct the firm's income statement.
II. Calculate the Earnings per share & total amount of dividends paid.