The Following Income Statement Was Reported for Bauer Inc Requirements:
A

question 39

Short Answer

The following income statement was reported for Bauer Inc.for the first year of operations ending December 31,2010 reported (in thousands of dollars):
$$\begin{array} { l r r } \text { Sales revenue } & & \$ 24,500 \\\text { Expenses: } & & \\\text { Cost of Sales } & \$ 12,100 & \\\text { Salaries and Wages } & 5,300 & \\\text { Rent } & 900 & \\\text { Utilities } & 500 & \\\text { Miscellaneous } & 600 & \\\text { Total Expenses } & & 19,400 \\\text { Income before taxes } & & 5,100 \\\text { Income tax expense } & & 1,785 \\\text { Net income } & & \$ 3,315\end{array}$$ Requirements:
A.Calculate net profit margin
B.Calculate earnings per share if there are 200,000 shares of common stock outstanding

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Definitions:

Confidence Interval

A collection of values obtained from statistical samples that is expected to encompass the value of an undetermined population parameter at a given confidence level.

Margin of Error

An expression of the amount of random sampling error in a survey's results, representing the range within which the true population parameter is expected to lie.

Margin of Error

The amount of error allowed in the results of a poll or survey, reflecting the confidence in the results.

Observations

Data collected during an experiment or research which are analyzed to gain insights and draw conclusions.