This is an exercise in constructing a p&l from info provided. it

This is an exercise in constructing a P&L from info provided. It involves determining various line-items based on A/R DSO, Inventory MOH, A/P Days, etc. info. 
NOTE: The NIBT amount (Net Income Before Tax) can be determined by dividing NIAT by (1-tax rate % as a decimal). For example, if NIAT is $250,000 and the tax rate is 38%, the NIBT would be:
NIBT = NIAT/(1 – 0.38) = $250,000/0.62 = $403,226.
The Expenses can be calculated as the difference between GP & NIBT.
Try this & let me know if you have any questions.
Ken
Construct a 2013 P&L for a company with the following data and calculate eps: (NOTE: eps is NIAT “available to common shareholders” divided ny share quantity.
 
 
Retained Earnings 12/31/12                   $1,250,000
Retained earnings 12/31/13                     1,600,000
A/R 12/31/13                               1,250,000 (60 days DSO)
Inventory 12/31/13                      1,500,000 (4 months-on-hand)
A/P 12/31/13                                562,500 (45 days)
Net Profit Margin                                  10%
Tax Rate                                                         30%
Preferred Dividend 2013              $100,000
Common Dividend                       $300,000
Common Stock                                      325,000 shares             
 
 
Complete all line items:
 
Sales
 
COGS
 
Gross Profit (GP)
 
GP%
 
Expenses
 
NIBT
 
Tax
 
NIAT
 
 
 
EPS