1.

award:
1.61 out of
1.61 points

 

 

Ozols Corporation's most recent income statement appears below:
 

  Sales (all on account)

$713,000  

  Cost of goods sold

305,000  

  Gross margin

408,000  

  Selling and administrative expense

175,000  

  Net operating income

233,000  

  Interest expense

64,000  

  Net Income before taxes

169,000  

  Income taxes

60,000  

  Net income

$109,000  

  
The gross margin percentage is closest to:

 

 

2.

award:
1.61 out of
1.61 points

 

 

Crandler Company's net income last year was $65,000. The company paid preferred dividends of $22,500 and its average common stockholders' equity was $500,000. The company's return on common stockholders' equity for the year was closest to:

 

 

3.

award:
0 out of
1.61 points

 

 

The average stockholders' equity for Horn Co. last year was $2,800,000. Included in this figure was $280,000 of preferred stock. Preferred dividends were $32,000. If the return on common stockholders' equity was 12.5% for the year, net income was:

 

4.

award:
0 out of
1.61 points

 

 

Artist Company's net income last year was $540,000. The company has 152,000 shares of common stock and 41,900 shares of preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. The company declared and paid dividends last year of $1.80 per share on the common stock and $0.80 per share on the preferred stock. The earnings per share of common stock is closest to:

 

 

5.

award:
1.61 out of
1.61 points

 

 

Archer Company had net income of $86,800 last year. The company has 6,800 shares of common stock and 4,300 shares of preferred stock outstanding. There was no change in the number of common or preferred shares outstanding during the year. Preferred dividends were $2 per share. The earnings per share of common stock was:

 

 

6.

award:
1.61 out of
1.61 points

 

 

The following data have been taken from your company's financial records for the current year:
  

  Earning per share

$30  

  Dividend per share

$8  

  Market price per share

$390  

  Book value per share

$225  

   
The price-earnings ratio is:

 

 

7.

award:
0 out of
1.61 points

 

 

Last year the return on total assets in Jeffrey Company was 8.00%. The total assets were 3 million at the beginning of the year and 3.25 million at the end of the year. The tax rate was 30%, interest expense totaled $115 thousand, and sales were $5.3 million. Net income for the year was:

 

 

9.

award:
0 out of
1.61 points

 

 

The following account balances have been provided for the end of the most recent year:
   

  Total assets

$180,000  

  Total stockholder's equity

$150,000  

  Total common stock (5,000 shares)

$50,000  

  Total preferred stock (1,000 shares)

$10,000  

  

 

10.

award:
0 out of
1.61 points

 

 

Delatrinidad Corporation's net income last year was $7,748,000. The dividend on common stock was $13.4 per share and the dividend on preferred stock was $3.2 per share. The market price of common stock at the end of the year was $54.5 per share. Throughout the year, 480,000 shares of common stock and 240,000 shares of preferred stock were outstanding. The dividend payout ratio is closest to:

 

11.

award:
1.61 out of
1.61 points

 

 

Last year, Shadow Corporation's dividend on common stock was $21.75 per share and the dividend on preferred stock was $20.86 per share. The market price of common stock at the end of the year was $75.00 per share. The dividend yield ratio is closest to:

 

 

12.

award:
1.61 out of
1.61 points

 

 

Hagerman Corporation's most recent income statement appears below:
    

  Sales (all on account)

$625,000  

  Cost of goods sold

375,000  

  Gross margin

250,000  

  Selling and administrative expense

125,000  

  Net operating income

125,000  

  Interest expense

31,250  

  Net income before taxes

93,750  

  Income taxes (30%)

28,125  

  Net income

$65,625  

  
The beginning balance of total assets was $330,000 and the ending balance was $204,000. The return on total assets is closest to:

 

 

13.

award:
0 out of
1.61 points

 

 

Excerpts from Lasso Corporation's most recent balance sheet appear below:
    

 

Year 2  

Year 1  

  Preferred stock

$280,000  

$280,000  

  Common stock

760,000  

760,000  

  Additional paid-in capital--common stock

286,000  

286,000  

  Retained earnings

760,000  

690,000  

  Total stockholder's equity

$1,186,000  

$1,116,000  

  
Net income for Year 2 was $181,000. Dividends on common stock were $73,000 in total and dividends on preferred stock were $38,000 in total. The return on common stockholders' equity for Year 2 is closest to:

 

14.

award:
0 out of
1.61 points

 

 

Drama Company's working capital is $136,000 and its current liabilities are $214,000. The company's current ratio is closest to:

 

15.

award:
1.61 out of
1.61 points

 

 

Brewster Company has an acid-test ratio of 1.5 and a current ratio of 2.5. Current assets equal $440,000, of which $12,400 is prepaid expenses. The company's current assets consist of cash, marketable securities, accounts receivable, prepaid expenses, and inventory. Brewster Company's inventory must be:

 

 

6.

award:
1.61 out of
1.61 points

 

 

Fraser Company had $390,000 in sales on account last year. The beginning accounts receivable balance was $23,000 and the ending accounts receivable balance was $32,200. The company's accounts receivable turnover was closest to:

[removed]

17.

award:
1.61 out of
1.61 points

 

 

Irastan Company, a retailer, had cost of goods sold of $320,000 last year. The beginning inventory balance was $56,000 and the ending inventory balance was $48,000. The company's average sale period was closest to: (Assume 365 days a year.)

 

18.

award:
1.61 out of
1.61 points

 

 

Deschambault Corporation's total current assets are $264,000, its noncurrent assets are $708,000, its total current liabilities are $132,000, its long-term liabilities are $520,000, and its stockholders' equity is $330,000. Working capital is:

 

 

19.

award:
1.61 out of
1.61 points

 

 

Hartzog Corporation's most recent balance sheet and income statement appear below:
 

Statement of Financial Position
December 31, Year 2 and Year 1
(in thousands of dollars)

 

Year 2  

Year 1  

Assets

 

 

  Current assets:

 

 

    Cash

$340  

$310  

    Accounts receivable

580  

560  

    Inventory

290  

620  

    Prepaid expenses

40  

40  

  Total current assets

1,250  

1,530  

  Plant and equipment, net

1,190  

1,200  

  Total assets

$2,440  

$2,730  

 

 

 

Liabilities and Stockholder's Equity

 

 

  Current liabilities:

 

 

    Accounts payable

$320  

$330  

    Accrued liabilities

20  

20  

    Notes payable, short term

100  

250  

  Total current liabilities

440  

600  

  Bonds payable

260  

340  

  Total liabilities

700  

940  

  Stockholder's equity:

 

 

    Preferred stock, $10 par, 5%

200  

420  

    Common stock, $2 par

660  

880  

    Additional paid-in capital--common stock

290  

290  

    Retained earnings

590  

200  

  Total stockholder's equity

1,740  

1,790  

  Total liabilities and stockholder's equity

$2,440  

$2,730  

  

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars) 

  Sales (all on account)

$7,350  

  Cost of goods sold

4,410  

  Gross margin

2,940  

  Selling and administrative expense

2,178  

  Net operating income

762  

  Interest expense

105  

  Net income before taxes

657  

  Income taxes (30%)

197  

  Net income

$460  

  
Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $10 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.
 
The earnings per share of common stock for Year 2 is closest to:

 

 

20.

award:
0 out of
1.61 points

 

 

Hartzog Corporation's most recent balance sheet and income statement appear below:

Statement of Financial Position
December 31, Year 2 and Year 1
(in thousands of dollars)

 

Year 2

Year 1

Assets

 

 

  Current assets:

 

 

    Cash

$500  

$230  

    Accounts receivable

420  

400  

    Inventory

210  

380  

    Prepaid expenses

40  

40  

  Total current assets

1,170  

1,050  

  Plant and equipment, net

950  

960  

  Total assets

$2,120  

$2,010  

 

 

 

Liabilities and Stockholders' Equity

 

 

  Current liabilities:

 

 

    Accounts payable

$325  

$250  

    Accrued liabilities

20  

20  

    Notes payable, short term

170  

160  

  Total current liabilities

515  

430  

  Bonds payable

240  

260  

  Total liabilities

$755  

$690  

  Stockholders' equity:

 

 

    Preferred stock, $100 par value, 5%

100  

260  

    Common stock, $2 par value

640  

640  

    Additional paid-in capital--common stock

190  

190  

    Retained earnings

435  

230  

  Total stockholders' equity

1,365  

1,320  

  Total liabilites & stockholders' equity

$2,120  

$2,010  

 

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)

  Sales (all on account)

$4,350  

  Cost of goods sold

2,610  

  Gross margin

1,740  

  Selling and administrative expense

1,289  

  Net operating income

451  

  Interest expense

65  

  Net income before taxes

386  

  Income taxes (30%)

116  

  Net income

$270  


Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.

The dividend payout ratio for Year 2 is closest to:

 

 

21.

award:
0 out of
1.61 points

 

 

Hartzog Corporation's most recent balance sheet and income statement appear below:

Statement of Financial Position
December 31, Year 2 and Year 1
(in thousands of dollars)

 

Year 2

Year 1

Assets

 

 

  Current assets:

 

 

    Cash

$230  

$200  

    Accounts receivable

360  

340  

    Inventory

180  

290  

    Prepaid expenses

40  

40  

  Total current assets

810  

870  

  Plant and equipment, net

860  

870  

  Total assets

$1,670  

$1,740  

 

 

 

Liabilities and Stockholders' Equity

 

 

  Current liabilities:

 

 

    Accounts payable

$180  

$220  

    Accrued liabilities

20  

20  

    Notes payable, short term

90  

130  

  Total current liabilities

290  

370  

  Bonds payable

210  

230  

  Total liabilities

$500  

$600  

  Stockholders' equity:

 

 

    Preferred stock, $100 par value, 5%

100  

200  

    Common stock, $2 par value

550  

550  

    Additional paid-in capital--common stock

190  

190  

    Retained earnings

330  

200  

  Total stockholders' equity

1,170  

1,140  

  Total liabilites & stockholders' equity

$1,670  

$1,740  

 

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)

  Sales (all on account)

$3,150  

  Cost of goods sold

1,890  

  Gross margin

1,260  

  Selling and administrative expense

932  

  Net operating income

328  

  Interest expense

50  

  Net income before taxes

278  

  Income taxes (30%)

83  

  Net income

$195  

  
Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.

The average collection period for Year 2 is closest to:
 (Assume 365 days a year.)

 

22.

award:
1.61 out of
1.61 points

 

 

Hartzog Corporation's most recent balance sheet and income statement appear below:

Statement of Financial Position
December 31, Year 2 and Year 1
(in thousands of dollars)

 

Year 2

Year 1

Assets

 

 

  Current assets:

 

 

    Cash

$230  

$200  

    Accounts receivable

360  

340  

    Inventory

180  

290  

    Prepaid expenses

40  

40  

  Total current assets

810  

870  

  Plant and equipment, net

860  

870  

  Total assets

$1,670  

$1,740  

 

 

 

Liabilities and Stockholders' Equity

 

 

  Current liabilities:

 

 

    Accounts payable

$180  

$220  

    Accrued liabilities

20  

20  

    Notes payable, short term

90  

130  

  Total current liabilities

290  

370  

  Bonds payable

210  

230  

  Total liabilities

$500  

$600  

  Stockholders' equity:

 

 

    Preferred stock, $100 par value, 5%

100  

200  

    Common stock, $2 par value

550  

550  

    Additional paid-in capital--common stock

190  

190  

    Retained earnings

330  

200  

  Total stockholders' equity

1,170  

1,140  

  Total liabilites & stockholders' equity

$1,670  

$1,740  

 

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)

  Sales (all on account)

$3,150  

  Cost of goods sold

1,890  

  Gross margin

1,260  

  Selling and administrative expense

932  

  Net operating income

328  

  Interest expense

50  

  Net income before taxes

278  

  Income taxes (30%)

83  

  Net income

$195  


Dividends on common stock during Year 2 totaled $60 thousand. Dividends on preferred stock totaled $5 thousand. The market price of common stock at the end of Year 2 was $7.04 per share.

The times interest earned for Year 2 is closest to:

 

23.

award:
0 out of
1.61 points

 

 

Financial statements for Larned Company appear below:

Larned Company
Statement of Financial Position
December 31, Year 2 and Year 1
(dollars in thousands)

 

Year 2

Year 1

  Current assets:

 

 

    Cash and marketable securities

$510  

$290  

    Accounts receivable, net

530  

320  

    Inventory

480  

480  

    Prepaid expenses

210  

210  

  Total current assets

1,730  

1,300  

  Noncurrent assets:

 

 

    Plant & equipment, net

5,330  

3,820  

  Total assets

$7,060  

$5,120  

 

 

 

  Current liabilities:

 

 

    Accounts payable

$60  

$110  

    Accrued liabilities

150  

90  

    Notes payable, short term

160  

350  

  Total current liabilities

370  

550  

  Noncurrent liabilities:

 

 

    Bonds payable

230  

780  

  Total liabilities

$600  

$1,330  

  Stockholders' equity:

 

 

    Preferred stock, $20 par, 10%

170  

170  

    Common stock, $10 par

260  

260  

    Additional paid-in capital--common stock

300  

300  

    Retained earnings

5,730  

3,060  

  Total stockholders' equity

6,460  

3,790  

  Total liabilites & stockholders' equity

$7,060  

$5,120  

 

Larned Company
Income Statement
For the Year Ended December 31, Year 2
(dollars in thousands)

  Sales (all on account)

$19,270  

  Cost of goods sold

13,490  

  Gross margin

5,780  

  Selling and administrative expense

540  

  Net operating income

5,240  

  Interest expense

230  

  Net income before taxes

5,010  

  Income taxes (30%)

1,503  

  Net income

$3,507  


Dividends during Year 2 totaled $837 thousand, of which $17 thousand were preferred dividends.
The market price of a share of common stock on December 31, Year 2 was $198.

Larned Company's earnings per share of common stock for Year 2 was closest to

 

24.

award:
1.61 out of
1.61 points

 

 

Excerpts from Goodrow Corporation's most recent balance sheet and income statement appear below:

 

Year 2

Year 1

  Total assets

$7,689  

$7,830  

  Total liabilities

$1,360  

$1,380  

  Stockholders' equity:

 

 

  Preferred stock, $100 par value, 10%

$950  

$950  

  Common stock, $2 par value

3,800  

3,800  

  Additional paid-in capital--common stock

980  

980  

  Retained earnings

599  

720  

  Total stockholders' equity

$6,329  

$6,450  

 

  Sales (all on account)

$3,030  

  Cost of goods sold

1,820  

  Gross margin

1,210  

  Selling and administrative expense

910  

  Net operating income

300  

  Interest expense

66  

  Net income before taxes

234  

  Income taxes (30%)

70  

  Net income

$164  


Dividends on common stock during Year 2 totaled $190. Dividends on preferred stock totaled $95. The market price of common stock at the end of Year 2 was $5.68 per share.

The earnings per share of common stock for Year 2 is closest to:

 

 

25.

award:
1.61 out of
1.61 points

 

 

Excerpts from Goodrow Corporation's most recent balance sheet and income statement appear below:

 

Year 2

Year 1

  Total assets

$6,548  

$6,660  

  Total liabilities

$1,210  

$1,230  

  Stockholders' equity:

 

 

  Preferred stock, $100 par value, 10%

$800  

$800  

  Common stock, $2 par value

3,200  

3,200  

  Additional paid-in capital--common stock

830  

830  

  Retained earnings

508  

600  

  Total stockholders' equity

$5,338  

$5,430  

 

  Sales (all on account)

$2,730  

  Cost of goods sold

1,640  

  Gross margin

1,090  

  Selling and administrative expense

820  

  Net operating income

270  

  Interest expense

59  

  Net income before taxes

211  

  Income taxes (30%)

63  

  Net income

$148  


Dividends on common stock during Year 2 totaled $160. Dividends on preferred stock totaled $80. The market price of common stock at the end of Year 2 was $5.62 per share.

The return on total assets for Year 2 is closest to:

26.

award:
0 out of
1.61 points

 

 

Excerpts from Goodrow Corporation's most recent balance sheet and income statement appear below:

 

Year 2

Year 1

  Total assets

$1,602  

$1,590  

  Total liabilities

$560  

$580  

  Stockholders' equity:

 

 

  Preferred stock, $100 par value, 10%

$150  

$150  

  Common stock, $2 par value

600  

600  

  Additional paid-in capital--common stock

180  

180  

  Retained earnings

112  

80  

  Total stockholders' equity

$1,042  

$1,010  

 

  Sales (all on account)

$1,430  

  Cost of goods sold

860  

  Gross margin

570  

  Selling and administrative expense

429  

  Net operating income

141  

  Interest expense

31  

  Net income before taxes

110  

  Income taxes (30%)

33  

  Net income

$77  


Dividends on common stock during Year 2 totaled $30. Dividends on preferred stock totaled $15. The market price of common stock at the end of Year 2 was $5.36 per share.

The book value per share at the end of Year 2 is closest to:

27.

award:
1.61 out of
1.61 points

 

 

Financial statements for Marcell Company appear below:

Marcell Company
Statement of Financial Position
December 31, Year 2 and Year 1
(dollars in thousands)

 

Year 2

Year 1

  Current assets:

 

 

    Cash and marketable securities

$240  

$230  

    Accounts receivable, net

190  

190  

    Inventory

420  

420  

    Preferred expenses

100  

100  

  Total current assets

950  

940  

  Noncurrent assets:

 

 

    Plant & equipment, net

2,340  

2,320  

  Total assets

$3,290  

$3,260  

 

 

 

  Current liabilities:

 

 

    Accounts payable

$400  

$230  

    Accrued liabilities

60  

60  

    Notes payable, short term

270  

450  

  Total current liabilities

730  

740  

  Noncurrent liabilities:

 

 

    Bonds payable

520  

660  

  Total liabilities

$1,250  

$1,400  

  Stockholders' equity:

 

 

    Preferred stock, $10 par, 8%

260  

260  

    Common stock, $5 par

300  

300  

    Additional paid-in capital--common stock

520  

520  

    Retained earnings

960  

780  

  Total stockholders equity

2,040  

1,860  

  Total liabilites & stockholders equity

$3,290  

$3,260  

 

Marcell Company
Income Statement
For the Year Ended December 31, Year 2
(dollars in thousands)

  Sales (all on account)

$4,150  

  Cost of goods sold

2,580  

  Gross margin

1,570  

  Selling and administrative expense

700  

  Net operating income

870  

  Interest expense

40  

  Net income before taxes

830  

  Income taxes (30%)

249  

  Net income

$581  


Marcell Company's working capital (in thousands of dollars) at the end of Year 2 was closest to:

28.

award:
1.61 out of
1.61 points

 

 

Financial statements for Marcell Company appear below:

Marcell Company
Statement of Financial Position
December 31, Year 2 and Year 1
(dollars in thousands)

 

Year 2

Year 1

  Current assets:

 

 

    Cash and marketable securities

$280  

$270  

    Accounts receivable, net

230  

230  

    Inventory

540  

540  

    Prepaid expenses

140  

140  

  Total current assets

1,190  

1,180  

  Noncurrent assets:

 

 

    Plant & equipment, net

2,660  

2,650  

  Total assets

$3,850  

$3,830  

 

 

 

  Current liabilities:

 

 

    Accounts payable

$230  

$270  

    Accured liabilities

70  

70  

    Notes payable, short term

400  

530  

  Total current liabilities

700  

870  

  Noncurrent liabilities:

 

 

    Bonds payable

710  

740  

  Total liabilities

$1,410  

$1,610  

  Stockholders' equity:

 

 

    Preferred stock, $10 par, 8%

340  

340  

    Common stock, $5 par

380  

380  

    Additional paid-in capital--common stock

640  

640  

    Retained earnings

1,080  

860  

  Total stockholders equity

2,440  

2,220  

  Total liabilites & stockholders equity

$3,850  

$3,830  

 

Marcell Company
Income Statement
For the Year Ended December 31, Year 2
(dollars in thousands)

  Sales (all on account)

$10,350  

  Cost of goods sold

7,250  

  Gross margin

3,100  

  Selling and administrative expense

1,210  

  Net operating income

1,890  

  Interest expense

170  

  Net income before taxes

1,720  

  Income taxes (30%)

516  

  Net income

$1,204  


Marcell Company's current ratio at the end of Year 2 was closest to:

 

 

29.

award:
1.61 out of
1.61 points

 

 

Financial statements for Marcell Company appear below:

Marcell Company
Statement of Financial Position
December 31, Year 2 and Year 1
(dollars in thousands)

 

Year 2

Year 1

  Current assets:

 

 

    Cash and marketable securities

$340  

$330  

    Accounts receivable, net

290  

290  

    Inventory

720  

720  

    Prepaid expenses

200  

200  

  Total current assets

1,550  

1,540  

  Noncurrent assets:

 

 

    Plant & equipment, net

3,140  

3,130  

  Total assets

$4,690  

$4,670  

 

 

 

  Current liabilities:

 

 

    Accounts payable

$290  

$330  

    Accured liabilities

70  

70  

    Notes payable, short term

460  

650  

  Total current liabilities

820  

1,050  

  Noncurrent liabilities:

 

 

    Bonds payable

830  

860  

  Total liabilities

$1,650  

$1,910  

  Stockholders' equity:

 

 

    Preferred stock, $10 par, 8%

460  

460  

    Common stock, $5 par

500  

500  

    Additional paid-in capital--common stock

820  

820  

    Retained earnings

1,260  

980  

  Total stockholders equity

3,040  

2,760  

  Total liabilites & stockholders equity

$4,690  

$4,670  

 

Marcell Company
Income Statement
For the Year Ended December 31, Year 2
(dollars in thousands)

  Sales (all on account)

$14,250  

  Cost of goods sold

9,980  

  Gross margin

4,270  

  Selling and administrative expense

1,670  

  Net operating income

2,600  

  Interest expense

230  

  Net income before taxes

2,370  

  Income taxes (30%)

711  

  Net income

$1,659  


Marcell Company's acid-test ratio at the end of Year 2 was closest to:

 

30.

award:
1.61 out of
1.61 points

 

 

Mclaughlin Corporation's most recent balance sheet and income statement appear below:

Statement of Financial Position
December 31, Year 2 and Year 1
(in thousands of dollars)

 

Year 2

Year 1

  Current assets:

 

 

    Cash

$400  

$350  

    Accounts receivable

550  

560  

    Inventory

380  

240  

    Prepaid expenses

190  

200  

  Total current assets

1,520  

1,350  

    Plant and equipment, net

2,320  

2,520  

  Total assets

$3,840  

$3,870  

 

           Liabilities and Stockholders' Equity

  Current liabilities:

 

 

    Accounts payable

$380  

$400  

    Accrued liabilities

210  

200  

    Notes payable, short term

160  

170  

  Total current liabilities

750  

770  

  Bonds payable

630  

660  

  Total liabilities

$1,380  

$1,430  

  Stockholders' equity:

 

 

    Preferred stock, $100 par value, 5%

800  

800  

    Common stock, $1 par value

800  

800  

    Additional paid-in capital--common stock

510  

510  

    Retained earnings

350  

330  

  Total stockholders equity

2,460  

2,440  

  Total liabilites & stockholders equity

$3,840  

$3,870  

 

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)

  Sales (all on account)

$6,690  

  Cost of goods sold

4,340  

  Gross margin

2,350  

  Selling and administrative expense

1,645  

  Net operating income

705  

  Interest expense

45  

  Net income before taxes

660  

  Income taxes (30%)

198  

  Net income

$462  


The times interest earned for Year 2 is closest to:

31.

award:
1.70 out of
1.70 points

 

 

Mclaughlin Corporation's most recent balance sheet and income statement appear below:

Statement of Financial Position
December 31, Year 2 and Year 1
(in thousands of dollars)

  

Year 2

Year 1

  Current assets:

  

  

    Cash

$440  

$390  

    Accounts receivable

610  

620  

    Inventory

420  

260  

    Prepaid expenses

210  

220  

  Total current assets

1,680  

1,490  

    Plant and equipment, net

2,580  

2,800  

  Total assets

$4,260  

$4,290  

  

           Liabilities and Stockholders' Equity

  Current liabilities:

 

 

    Accounts payable

$420  

$440  

    Accrued liabilities

230  

220  

    Notes payable, short term

180  

190  

  Total current liabilities

830  

850  

  Bonds payable

690  

720  

  Total liabilities

$1,520  

$1,570  

  Stockholders' equity:

 

 

    Preferred stock, $100 par value, 5%

900  

900  

    Common stock, $1 par value

900  

900  

    Additional paid-in capital--common stock

570  

570  

    Retained earnings

370  

350  

  Total stockholders equity

2,740  

2,720  

  Total liabilites & stockholders equity

$4,260  

$4,290  

 

Income Statement
For the Year Ended December 31, Year 2
(in thousands of dollars)

  Sales (all on account)

$7,570  

  Cost of goods sold

4,920  

  Gross margin

2,650  

  Selling and administrative expense

1,855  

  Net operating income

795  

  Interest expense

47  

  Net income before taxes

748  

  Income taxes (30%)

224  

  Net income

$524  



 

 

    • 8 years ago