At December 31, 2009, the general ledger of Main Street Marketing had the following account balances. All adjusting entries (except for income taxes at 40%) have been made. The company had 9,000 shares of common stock outstanding during the year.
- Accounts payable $7,340
- Accounts receivable $12,980
- Accrued liabilities $22,500
- Accumulated depreciation $14,980
- Advertising expense $8,777
- Cash $7,980
- Common stock $28,000
- Cost of goods sold $118,922
- Depreciation expense $11,254
- Equipment $78,700
- Loss of sale of land $7,900
- Interest expense $1,980
- Merchandise $22,990
- Land $50,000
- Retained earnings $37,091
- Sales revenue $311,200
- Utilities expense $6,350
- Wages expense $71,245
a. What is the amount of gross profit? (show computations)
b. What is the amount of operating income? (Show computations)
c. What is the amount of pretax income? (show computations)
d. What is the amount of net income? (show computations)
e. What are the earnings per share? (show computations)