The accountant of weatherspoon shoe co. has compiled the following information from the company's records as a basis for an income statement for the year ended december 31, 2010.

rental revenue $29,000
interest expense 18,000
market appreciation on land above cost 31,000
wages and salaries-sales 114,800
materials and supplies-sales 17,600
income tax 30,600
wages and salaries-administrative 135,900
other administrative expenses 51,700
cost of goods sold 516,000
net sales 980,000
depreciation on plant assets (70% selling, 30% administrative) 65,000
dividends declared 16,000

there were 20,000 shares of common stock outstanding during the year.

prepare a multiple-step income statement. (round earnings per share to 2 decimal places, e. g. 5.25. for multiple entries list from largest to smallest amounts, e. g. 10, 5, 1. enter all amounts as positive amounts and subtract where necessary.)

For the past six years, the price of slippery rock stock has been increasing at a rate of 8.21 percent a year. currently, the stock is priced at $43.40 a share and has a required return of 11.65 percent. what is the dividend yield? 3.20 percent 2.75 percent 3.69 percent

Shrieves casting company is considering adding a new line to its product mix, and the capital budgeting analysis is being conducted by sidney johnson, a recently graduated mba. the production line would be set up in unused space in the main plant. the machinery’s invoice price would be approximately $200,000, another $10,000 in shipping charges would be required, and it would cost an additional $30,000 to install the equipment. the machinery has an economic life of 4 years, and shrieves has obtained a special tax ruling that places the equipment in the macrs 3-year class. the machinery is expected to have a salvage value of $25,000 after 4 years of use. the new line would generate incremental sales of 1,250 units per year for 4 years at an incremental cost of $100 per unit in the first year, excluding depreciation. each unit can be sold for $200 in the first year. the sales price and cost are both expected to increase by 3% per year due to inflation. further, to handle the new line, the firm’s net working capital would have to increase by an amount equal to 12% of sales revenues. the firm’s tax rate is 40%, and its overall weighted average cost of capital, which is the risk-adjusted cost of capital for an average project (r), is 10%. define “incremental cash flow.” (1) should you subtract interest expense or dividends when calculating project cash flow?

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