Question

all answers please!

You are evaluating the balance sheet for Goodman's Bees Corporation. From the balance sheet you find the following balances: cash and marketable securities = $400,000, accounts receivable = $1,200,000, inventory = $2,100,000, accrued wages and taxes = $500,000, accounts payable = $800,000, and notes payable = $600,000 Calculate Goodman Bees' net working capital (Enter your answer in dollars not in millions. Round your answer to the nearest dollar amount.) Networking capital

Answer 1

Answer to Question 1:

Current assets = Cash and marketable securities + Accounts receivable + Inventory
Current assets = $400,000 + $1,200,000 + $2,100,000
Current assets = $3,700,000

Current liabilities = Accrued wages and taxes + Accounts payable + Notes payable
Current liabilities = $500,000 + $800,000 + $600,000
Current liabilities = $1,900,000

Net working capital = Current assets - Current liabilities
Net working capital = $3,700,000 - $1,900,000
Net working capital = $1,800,000

Answer to Question 2:

Total assets = Current assets + Fixed assets
Total assets = $435,200 + $550,800
Total assets = $986,000

Total liabilities = Current liabilities + Long-term debt
Total liabilities = $416,600 + $314,500
Total liabilities = $731,100

Total stockholders’ equity = Total assets - Total liabilities
Total stockholders’ equity = $986,000 - $731,100
Total stockholders’ equity = $254,900

Answer to Question 3:

Net Income = EBIT - Interest Expense - Taxes
$435,000 = $538,000 - $63,000 - Taxes
Taxes = $40,000

Answer to Question 4:

Net Income = EBIT - Interest Expense - Taxes
Net Income = $773,500 - $100,000 - $234,500
Net Income = $439,000

Earnings per share = Net Income / Number of shares outstanding
Earnings per share = $439,000 / 100,000
Earnings per share = $4.39