Mega wholesales had sales of $800,000 in 2014 and cost of goods sold represented 60 percent of sales.

  1. Mega wholesales had sales of $800,000 in 2014 and cost of goods sold represented 60 percent of sales. Selling and administrative expenses were 10 percent of sales. Depreciation expense was $12,000 and interest expense for the year was $8,000. The firm’s tax rate is 30 percent. Prepare in good form an income statement. If the company had 100,000 shares outstanding compute the earning per share.