Capacity Usage and Growth In the previous problem, suppose the firm was operating at only 80 percent capacity in 2009. What is EFN now?
MOOSE TOURS, INC. 2009 Income Statement | ||
Sales |
| $929,000 |
Costs |
| 723,000 |
Other expenses |
| 19,000 |
Earnings before interest and taxes |
| $187,000 |
Interest expense |
| 14,000 |
Taxable income |
| $173,000 |
Taxes |
| 60,550 |
Net income |
| $112,450 |
Dividends | $33,735 |
|
Addition to retained earnings | 78,715 |
|
MOOSE TOURS, INC. Balance Sheet as of December 31, 2009 | |||
Assets | Liabilities and Owners’ Equity | ||
Current assets |
| Current liabilities |
|
Cash | $ 25,300 | Accounts payable | $ 68,000 |
Accounts receivable | 40,700 | Notes payable | 17,000 |
Inventory | 86,900 | Total | $ 85,000 |
Total | $152,900 | Long-term debt | $158,000 |
|
| Owners’ equity |
|
Fixed assets |
| Common stock and paid-in surplus | $140,000 |
Net plant and equipment | $413,000 | Retained earnings | 182,900 |
|
| Total | $322,900 |
Total assets | $565,900 | Total liabilities and owners’ equity | $565,900 |
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