Question

The Golden Eagle Corporation has the following items on their income and balance sheets (values in tables are in thousands:

Balance Sheet Items
(Assets)

	Last Year	Two Years Ago
Cash	480	420
Accounts Receivable	580	470
Inventory	280	279
Total Current Assets
Fixed Assets	4800	4620
Depreciation	2395	2056
Net Fixed Assets

Balance Sheet Items
(Liabilities)

Accounts Payable	570	540
Notes Payable	87	94
Total Current Liabilities
Long Term Liabilities	1060	960
Total Liabilities
Preferred Stock	100	100
Common Stock	330	330
Retained Earnings	1355	1060
Total Liabilities and Equity

Income Statement Items

	Past Year	Two Years Ago
Sales	3100	2500
Cost of Goods Sold	1870	1790
Operating Expenses	575	520
Interest Paid	99	88
Taxes Paid	88	78
Preferred Stock Dividends Paid	97	22

Using the Dupont System of Analysis, what are the earnings available for common share holders?

Answer 1

Last year Particular sales Cost of goods sold operating exp. Interest paid profit before tax taxation Profit After Tax Divident paid to preference Net income Retained earning Amount availible for equity holders 3100 1870 575 99 556 97 459 97 362 295 67

Note:-

Here I have assumed that Depriciation is already included in the operating expenses of the company.

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