1. Building an Income statement. Lifetime, Inc. has sales of $585,000, costs of $273, 000, depreciation expense of $71,000, interest expense of $38,000, and a tax rate of 35%. What is the net income for this firm?

2. Per Share Earnings and Dividends. Suppose the firm in Problem A had 40,000 shares of common stock outstanding. What are the earnings per share, or EPS, figure?  What are the dividends per share figure?

 (Problem A: Dividends and Retained Earnings: Suppose the firm in Problem 1 paid out $36,000 in cash dividends. What is the additional income for this firm?

3. Calculating OCF. Hammett, Inc. has sales of $19,570, costs of  $9, 460, depreciation expense of $2,130, and interest expense of $1,620. If the tax rate is 35 percent, what is the operating cash flow, or OCF?

4. Preparing a Balance Sheet. Prepare a balance sheet for Alaskan         

Orange Corp. as of December 31, 2010, based on the following information: cash = $193,000; patents and copyrights = $847,000; accounts payable = $296,000; accounts receivable = $253,000; tangible net fixed assets = $5,100, 000; inventory = $538,000; notes = $189,000; accumulated retained earnings = $4,586,000; long-term debt = $1,250,000.