The Following Statement of Earnings Was Reported for Cotrell Inc

question 143

Essay

The following statement of earnings was reported for Cotrell Inc. for the first year of operations ending December 31, 20X2, reported in thousands of dollars: $\begin{array}{|l|r|r|}\hline \text { Sales revenue } & & \$ 10,600 \\\hline \text { Expenses: } & & \\\hline \text { Cost of Sales } & \$ 4,200 & \\\hline \text { Salaries and Wages } & 2,100 & \\\hline \text { Rent } & 1,400 & \\\hline \text { Utilities } & 800 & \\\hline \text { Miscellaneous } & 1,100 & \\\hline \text { Total Expenses } & & 9,600 \\\hline \text { Income before taxes } & & 1,000 \\\hline \text { Income tax expense } & &250 \\\hline \text { Profit } & & \$ 50 \\\hline\end{array}$
Calculate the following: (a) net profit margin (b) earnings per share if there are 100 ,000 shares outstanding

---

Definitions:

Endochondral Ossification

A biological process by which bone tissue is formed from cartilage, notably in the formation and growth of long bones.

Foramen

A natural opening or passage, especially in a bone, allowing for the passage of nerves or vessels.

Openings

Natural or surgically created gaps or spaces in the body that allow access to internal structures or facilitate the passage of fluids.

Appendicular Skeleton

Part of the skeleton that includes the bones of the upper and lower limbs, as well as the girdles (shoulder bones and pelvic bones) that attach them to the axial skeleton.