Given the following information for the \'09 year, prepare an Income Statement:

Question

Given the following information for the '09 year, prepare an Income Statement:

* Annual Volume of 8MM units

* Sales Price of $.75 per unit

* Gross Profit Percentage of 10%

* Sales & General Expense were 8% of Sales

* Accumulated Depreciation in '08 totaled $600M; in the

09 year the Total Accumulated Depreciation amount was $650M.

* Bank debt averaged 250M for the year; interest rate was 8%

* EPS was .10

* Tax rate is 40%

Given the following information for the '09 year, prepare an Income Statement:

* Annual Volume of 8MM units

* Sales Price of $.75 per unit

* Gross Profit Percentage of 10%

* Sales & General Expense were 8% of Sales

* Accumulated Depreciation in '08 totaled $600M; in the

09 year the Total Accumulated Depreciation amount was $650M.

* Bank debt averaged 250M for the year; interest rate was 8%

* EPS was .10

* Tax rate is 40%

* There are 100M shares of common stock outstanding

Explanation / Answer

sales $                 4,333,333,332.75 purchase $                 3,899,999,999.48 Gross Profit $                    433,333,333.28 SG Expense $                    346,666,666.62 Depreciation $                      50,000,000.00 Operating Profit $                      36,666,666.67 Interest $                      20,000,000.00 EBT $                      16,666,666.67 Taxes $                        6,666,666.67 Net Profit $                      10,000,000.00

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