Evaluating profitability) last year, stevens inc. had sales of $402 comma 000, with a cost of goods sold of $111 comma 000. the firm's operating expenses were $ 129 comma 000, and its increase in retained earnings was $56 comma 000. there are currently 21 comma 000 common stock shares outstanding and the firm pays a $1.56 dividend per share. a. assuming the firm's earnings are taxed at 21 percent, construct the firm's income statement. b. compute the firm's operating profit margin. c. what was the times interest earned?

Pear co.’s income statement for the year ended december 31, as prepared by pear’s controller, reported income before taxes of $125,000. the auditor questioned the following amounts that had been included in income before taxes: equity in earnings of cinn co. $ 40,000 dividends received from cinn 8,000 adjustments to profits of prior years for arithmetical errors in depreciation (35,000) pear owns 40% of cinn’s common stock, and no acquisition differentials are relevant. pear’s december 31 income statement should report income before taxes of