See the following financial information (Income Statement and balance Sheet) for Thornton Company for the years ending December 31, 1998 and 1999.
With the information given , we should first draft Income Statement & Balance Sheet | |||||
Income Statement | |||||
1998 | 1999 | ||||
Sales | 2,500,000.00 | 2,900,000.00 | |||
Cost of Goods Sold | 1,600,000.00 | 1,900,000.00 | |||
R & D Expense | 170,000.00 | 190,000.00 | |||
Selling & Admin Expense | 300,000.00 | 450,000.00 | |||
EBIDA | 430,000.00 | 360,000.00 | |||
Depreciation | 100,000.00 | 110,000.00 | |||
EBIT | 330,000.00 | 250,000.00 | |||
Interest Expense | 80,000.00 | 90,000.00 | |||
EBIT | 250,000.00 | 160,000.00 | |||
Taxes | 70,000.00 | 90,000.00 | |||
PAT | 180,000.00 | 70,000.00 | |||
Balance Sheet | |||||
Assets | 1998 | 1999 | EQUITY & LIABILITY | 1998 | 1999 |
Inventory | 530,000.00 | 490,000.00 | Notes Payable | 250,000.00 | 220,000.00 |
Cash(Balance Figure) | 220,000.00 | 90,000.00 | Accounts Payable | 540,000.00 | 500,000.00 |
Marketable Secuities | 20,000.00 | 20,000.00 | Accured Expenses | 70,000.00 | 50,000.00 |
Accounts Receivables | 180,000.00 | 230,000.00 | Corporate Bond | 580,000.00 | 650,000.00 |
Long Term Investment | 70,000.00 | 80,000.00 | Common Stock(Face Value $1) | 100,000.00 | 150,000.00 |
Gross Plant & Equpiment | 1,000,000.00 | 1,310,000.00 | Excess Paid in Capital | 100,000.00 | 130,000.00 |
Accumulated Depreciation | (200,000.00) | (310,000.00) | Retained Earnings | 180,000.00 | 210,000.00 |
TOTAL | 1,820,000.00 | 1,910,000.00 | TOTAL | 1,820,000.00 | 1,910,000.00 |
Solution | |||||
Net Plant & Equipment | 1998 | 1999 | |||
Gross Plant & Equpiment | 1,000,000.00 | 1,310,000.00 | |||
Accumulated Depreciation | (200,000.00) | (310,000.00) | |||
Net Plant & Equipment | 800,000.00 | 1,000,000.00 | |||
Cash Balance | 1998 | 1999 | |||
Balance Figure as per Balance Sheet | 220,000.00 | 90,000.00 | |||
Net Income | 1998 | 1999 | |||
PAT(as per income statement+A11) | 180,000.00 | 70,000.00 | |||
Quick Ratio=Quick Assets/Current Liability | 1998 | 1999 | |||
Quick Assets | |||||
Cash(Balance Figure) | 220,000.00 | 90,000.00 | |||
Marketable Secuities | 20,000.00 | 20,000.00 | |||
Accounts Receivables | 180,000.00 | 230,000.00 | |||
Total Quick Assets | 420,000.00 | 340,000.00 | |||
Current Liabilities | |||||
Notes Payable | 250,000.00 | 220,000.00 | |||
Accounts Payable | 540,000.00 | 500,000.00 | |||
Accured Expenses | 70,000.00 | 50,000.00 | |||
Total Current Liabilities | 860,000.00 | 770,000.00 | |||
Quick Ratio=Quick Assets/Current Liability | 0.49 | 0.44 | |||
ROE=Net Income/Shareholer's Equity | 1998 | 1999 | |||
Net Income | 180,000.00 | 70,000.00 | |||
Shareholder's Equity | |||||
Common Stock(Face Value $1) | 100,000.00 | 150,000.00 | |||
Excess Paid in Capital | 100,000.00 | 130,000.00 | |||
Retained Earnings | 180,000.00 | 210,000.00 | |||
Total Shareholder's Equity | 380,000.00 | 490,000.00 | |||
ROE | 0.47 | 0.14 | |||
EPS=Net Income/Total Outstanding Common Stock | 1998 | 1999 | |||
Net Income | 180,000.00 | 70,000.00 | |||
Total Outstanding Common Stock | 100,000.00 | 150,000.00 | |||
EPS | 1.80 | 0.47 |
See the following financial information (Income Statement and balance Sheet) for Thornton Company for the years...
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