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Question
| Income Statement | |
| Revenues | $320,000,000 |
| Less: Cost of Goods Sold | $162,000,000 |
| Gross Profit | $158,000,000 |
| Less: Operating Expenses | $120,000,000 |
| Less: Depreciation | $11,000,000 |
| Operating Profit | $27,000,000 |
| Less: Interest Expense | $8,500,000 |
| Net Profit Before Taxes | $18,500,000 |
| Less: Taxes | $6,290,000 |
| Net Income | $12,210,000 |
| Earnings Available to Common | $12,210,000 |
| Dividends Paid (60% of EAC) | $7,326,000 |
| Addition to Retained Earnings | $4,884,000 |
| Earnings Per Share | $6.11 |
| Balance Sheet | |||
| Assets | Current Year | Prior Year | Change |
| Cash | $1,500,000 | $3,000,000 | ($1,500,000) |
| Marketable Securities | $1,500,000 | $3,200,000 | ($1,700,000) |
| Accounts Receivable | $57,000,000 | $44,000,000 | $13,000,000 |
| Inventory | $106,000,000 | $99,000,000 | $7,000,000 |
| Pre-Paid Expenses | $8,400,000 | $11,000,000 | ($2,600,000) |
| Total Current Assets | $174,400,000 | $160,200,000 | $14,200,000 |
| Long-Term Assets | $148,000,000 | $154,000,000 | ($6,000,000) |
| Total Assets | $322,400,000 | $314,200,000 | $8,200,000 |
| Liabilities | Current Year | Prior Year | Change |
| Accounts Payable | $8,716,000 | $6,400,000 | $2,316,000 |
| Short-Term Debt | $102,000,000 | $105,000,000 | ($3,000,000) |
| Total Current Liabilities | $110,716,000 | $111,400,000 | ($684,000) |
| Long-Term Debt (8%) | $115,000,000 | $111,000,000 | $4,000,000 |
| Total Liabilities | $225,716,000 | $222,400,000 | $3,316,000 |
| Common Stock ($1 Par) | $2,000,000 | $2,000,000 | $0 |
| Paid-In Capital | $65,000,000 | $65,000,000 | $0 |
| Retained Earnings | $29,684,000 | $24,800,000 | $4,884,000 |
| Total Equity | $96,684,000 | $91,800,000 | $4,884,000 |
| Total Liabilities and Equity | $322,400,000 | $314,200,000 | $8,200,000 |
a. 3.8%
b. 5.1%
c. 5.4%
d. 12.6%
a. 13.3%
Answer
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