- The 2019 and 2018 balance sheets for Shome Industries are provided below. The company’s sales for 2019 were $1,500 million, and EBITDA was 25% of sales. Furthermore, depreciation amounted to 10% of net fixed assets, interest expense was $30 million, the corporate tax rate was 25%, and Shome pays out 60% of its net income as dividends.
Shome had 8 million shares outstanding in 2019, the 12/31/19 stock price was $90 per share, and its after-tax cost of capital was 15%. Based upon this information, answer the following seven questions.
A. Set up the company’s 2019 Statement of Stockholders’ Equity.
Homework Answers
Change of equity is calculated by taking the begining share
capital balance. retained earning and dividend paid during the
year, The both common stock and retained earning closing balance
are shown in balance sheet liability side.
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The 2019 and 2018 balance sheets for Shome Industries are
provided below. The company’s sales for...
Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance...
Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets 2019 2018 Assets Cash and equivalents $70 $55 Accounts receivable 275 300 Inventories 375 250 Total current assets $720 $605 Net plant and equipment 2,300 1,490 Total assets $3,020 $2,095 Liabilities and Equity Accounts payable $150 $85 Accruals 75 50 Notes payable 120 45 Total current liabilities $345 $180 Long-term debt 450 290 Common stock 1,225 1,225 Retained earnings 1,000 400 Total liabilities...
Quantitative Problem: Rosnan Industries' 2020 and 2019 balance sheets and income statements are shown below. Balance...
Quantitative Problem: Rosnan Industries' 2020 and 2019 balance sheets and income statements are shown below. Balance Sheets: 2020 2019 $100 Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets $85 300 250 275 375 $750 2,300 $3,050 $635 1,490 $2,125 $150 $85 75 50 75 $210 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity 150...
Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as...
Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2019 2018 Assets Cash and equivalents $ 13,000 $ 11,000 Accounts receivable 35,000 30,000 Inventories 30,380 26,000 Total current assets $ 78,380 $ 67,000 Net plant and equipment 46,000 45,000 Total assets $124,380 $112,000 Liabilities and Equity Accounts payable $ 10,300 $ 8,000 Accruals 7,700 6,000 Notes payable 6,300 5,050 Total current liabilities $ 24,300 $ 19,050 Long-term bonds 15,000 15,000 Total liabilities $...
Quantitative Problem: Rosnan Industries' 2020 and 2019 balance sheets and income statements are shown below. Balance...
Quantitative Problem: Rosnan Industries' 2020 and 2019 balance sheets and income statements are shown below. Balance Sheets: 2020 2019 Cash and equivalents $90 $75 Accounts receivable 275 300 Inventories 375 250 Total current assets $740 $625 Net plant and equipment 2,300 1,490 Total assets $3,040 $2,115 Accounts payable $150 $85 Accruals 75 50 Notes payable 140 65 Total current liabilities $365 $200 Long-term debt 450 290 Common stock 1,225 1,225 Retained earnings 1,000 400 Total common equity $2,225 $1,625 Total...
Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as...
Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2019 2018 Assets Cash and equivalents $ 15,000 $ 14,000 Accounts receivable 30,000 25,000 Inventories 27,640 22,000 Total current assets $ 72,640 $ 61,000 Net plant and equipment 47,000 46,000 Total assets $119,640 $107,000 Liabilities and Equity Accounts payable $ 10,200 $ 8,500 Accruals 7,100 6,000 Notes payable 6,100 5,300 Total current liabilities $ 23,400 $ 19,800 Long-term bonds 20,000 20,000 Total liabilities $...
Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as...
Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2019 2018 Assets Cash and equivalents $ 14,000 $ 13,000 Accounts receivable 35,000 30,000 Inventories 30,890 26,000 Total current assets $ 79,890 $ 69,000 Net plant and equipment 50,000 46,000 Total assets $129,890 $115,000 Liabilities and Equity Accounts payable $ 10,800 $ 8,000 Accruals 7,800 5,000 Notes payable 6,300 5,250 Total current liabilities $ 24,900 $ 18,250 Long-term bonds 20,000 20,000...
Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as...
Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2019 2018 Assets Cash and equivalents $ 14,000 $ 12,000 Accounts receivable 35,000 25,000 Inventories 31,040 23,000 Total current assets $ 80,040 $ 60,000 Net plant and equipment 49,000 48,000 Total assets $129,040 $108,000 Liabilities and Equity Accounts payable $ 11,000 $ 8,000 Accruals 7,700 6,000 Notes payable 6,500 5,150 Total current liabilities $ 25,200 $ 19,150 Long-term bonds 20,000 20,000 Total liabilities $...
Below are Laiho Industries’ 2017 and 2018 balance sheet items: 2018 2017 Cash 102,850 89,725 Accounts...
Below are Laiho Industries’ 2017 and 2018 balance sheet
items:
2018 2017
Cash 102,850 89,725
Accounts receivable 103,365 85,527
Long-term debt 76,264 63,914
Accounts payable 30,761 23,109
Common stock 100,000 90,000
Notes payable 16,717 14,217
Net fixed assets 67,165 42,436
Accruals 30,477 22,656
Inventories 38,444 34,982
Retained earnings 57,605 38,774
Sales for 2018 were $455,150,000, and EBITDA was 15% of sales.
Furthermore, depreciation and amortization were 11% of net fixed
assets, interest was $8,575,000, the corporate tax rate was 40%,...
Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance...
Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 $ 90 275 Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets 375 $ 740 2,000 $2,740 2018 $ 75 300 350 $ 725 1,490 $2,215 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Income Statements: $ 150 75 140 $ 365 450 1,225 700 $2,740...
Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. 2019 2018 Assets...
Arlington Corporation's financial statements (dollars and shares
are in millions) are provided here.
2019 2018 Assets Cash and equivalents $ 15,000 $ 11,000 Accounts receivable 30,000 25,000 Inventories 28,480 24,000 Total current assets $ 73,480 $ 60,000 Net plant and equipment 53,000 48,000 Total assets $126,480 $108,000 Liabilities and Equity Accounts payable $ 10,800 $ 9,500 Accruals 7,500 6,000 Notes payable 6,700 5,100 Total current liabilities $ 25,000 $ 20,600 Long-term bonds 10,000 10,000 Total liabilities $ 35,000 $ 30,600...
Quantitative Problem: Rosnan Industries' 2020 and 2019 balance sheets and income statements are shown below. Balance Sheets: 2020 2019 $100 Assets Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets $85 300 250 275 375 $750 2,300 $3,050 $635 1,490 $2,125 $150 $85 75 50 75 $210 Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity 150...
Arlington Corporation's financial statements (dollars and shares are in millions) are provided here. Balance Sheets as of December 31 2019 2018 Assets Cash and equivalents $ 14,000 $ 13,000 Accounts receivable 35,000 30,000 Inventories 30,890 26,000 Total current assets $ 79,890 $ 69,000 Net plant and equipment 50,000 46,000 Total assets $129,890 $115,000 Liabilities and Equity Accounts payable $ 10,800 $ 8,000 Accruals 7,800 5,000 Notes payable 6,300 5,250 Total current liabilities $ 24,900 $ 18,250 Long-term bonds 20,000 20,000...
Below are Laiho Industries’ 2017 and 2018 balance sheet
items:
2018 2017
Cash 102,850 89,725
Accounts receivable 103,365 85,527
Long-term debt 76,264 63,914
Accounts payable 30,761 23,109
Common stock 100,000 90,000
Notes payable 16,717 14,217
Net fixed assets 67,165 42,436
Accruals 30,477 22,656
Inventories 38,444 34,982
Retained earnings 57,605 38,774
Sales for 2018 were $455,150,000, and EBITDA was 15% of sales.
Furthermore, depreciation and amortization were 11% of net fixed
assets, interest was $8,575,000, the corporate tax rate was 40%,...
Quantitative Problem: Rosnan Industries' 2019 and 2018 balance sheets and income statements are shown below. Balance Sheets: 2019 $ 90 275 Cash and equivalents Accounts receivable Inventories Total current assets Net plant and equipment Total assets 375 $ 740 2,000 $2,740 2018 $ 75 300 350 $ 725 1,490 $2,215 Accounts payable Accruals Notes payable Total current liabilities Long-term debt Common stock Retained earnings Total liabilities and equity Income Statements: $ 150 75 140 $ 365 450 1,225 700 $2,740...
Arlington Corporation's financial statements (dollars and shares
are in millions) are provided here.
2019 2018 Assets Cash and equivalents $ 15,000 $ 11,000 Accounts receivable 30,000 25,000 Inventories 28,480 24,000 Total current assets $ 73,480 $ 60,000 Net plant and equipment 53,000 48,000 Total assets $126,480 $108,000 Liabilities and Equity Accounts payable $ 10,800 $ 9,500 Accruals 7,500 6,000 Notes payable 6,700 5,100 Total current liabilities $ 25,000 $ 20,600 Long-term bonds 10,000 10,000 Total liabilities $ 35,000 $ 30,600...
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