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ASSETS 2010 2009 LIABILITIES AND EQUITY 2010 2009 Cash and equivalents S 10 S 15 $60 $ 30 Accounts payable Notes payable Accruals Short-term investments 65 110 60 Accounts receivable 375 315 140 130 Inventories 615 415 Total current liabilities $ 310 220 S1,000 1,000 Total current assets S 810 Long-tem bonds 754 580 Net plant and equipment 870 Total liabilities S1,064 S 800 Preferred stock (400,000 shares) Common stock (50,000,000 shares) 40 40 130 130 Retained eamings Total common equity Total liabilities and equity 766 710 S 896 $2.000 S1,680 S 840 S1,680 Total assets $2,000 2010 2009 Net sales $3,000.0 $2,850.0 Operating costs excluding depreciation and amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) 2616.2 S 383.8 2,497.0 S 353.0 Depreciation 100.0 90.0 Аmortiation 0.0 0.0 Depreciation and amortization Earnings before interest and taxes (EBIT, or operating income) S 100.0 $ 90.0 $ 263.0 $ 283.8 88.0 S 195.8 78.3 S 117.5 Less interest 60.0 S 203.0 Earnings before taxes (EBT) Taxes (40%) 81.2 S 121.8 Net income before preferred dividends Preferred dividends 4.0 4.0 Net income S 113.5 117.8 Additional information: 2009 2010 Common Dividends Addition $53.0 $64.8 $57.5 $56.0 to Retained Earnings Common Stock Price Outstanding Shares (in millions) WACC 23 20 50 50 5% 6%

ASSETS 2010 2009 LIABILITIES AND EQUITY 2010 2009 Cash and equivalents S 10 S 15 $60 $ 30 Accounts payable Notes payable Accruals Short-term investments 65 110 60 Accounts receivable 375 315 140 130 Inventories 615 415 Total current liabilities $ 310 220 S1,000 1,000 Total current assets S 810 Long-tem bonds 754 580 Net plant and equipment 870 Total liabilities S1,064 S 800 Preferred stock (400,000 shares) Common stock (50,000,000 shares) 40 40 130 130 Retained eamings Total common equity Total liabilities and equity 766 710 S 896 $2.000 S1,680 S 840 S1,680 Total assets $2,000 2010 2009 Net sales $3,000.0 $2,850.0 Operating costs excluding depreciation and amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) 2616.2 S 383.8 2,497.0 S 353.0 Depreciation 100.0 90.0 Аmortiation 0.0 0.0 Depreciation and amortization Earnings before interest and taxes (EBIT, or operating income) S 100.0 $ 90.0 $ 263.0 $ 283.8 88.0 S 195.8 78.3 S 117.5 Less interest 60.0 S 203.0 Earnings before taxes (EBT) Taxes (40%) 81.2 S 121.8 Net income before preferred dividends Preferred dividends 4.0 4.0 Net income S 113.5 117.8 Additional information: 2009 2010 Common Dividends Addition $53.0 $64.8 $57.5 $56.0 to Retained Earnings Common Stock Price Outstanding Shares (in millions) WACC 23 20 50 50 5% 6%

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 7E
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Net cash Flow per Share

ASSETS 2010 2009 LIABILITIES AND EQUITY 2010 2009 Cash and equivalents Short-term investments $ 10 S 15 S 60 Accounts payable $ 30 65 Notes payable 110 60 Accounts receivable 375 315 Accruals 140 130 S 310 S 220 Total current liabilities Long-term bonds Inventories 615 S1,000 415 Total current assets S 810 754 580 Net plant and equipment 1,000 870 Total liabilities S1,064 S 800 Preferred stock (400,000 shares) 40 40 Common stock (50,000,000 shares) Retained eamings Total common equity Total liabilities and equity 130 130 766 710 $2,000 S 89% $2,000 $ 840 $1,680 Total assets S1,680 2010 2009 Net sales $3,000.0 $2,850.0 Operating costs excluding depreciation and amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) 2,616.2 S 383.8 2,497.0 S 353.0 Depreciation 100.0 90.0 Amortization 0.0 0.0 S 100.0 S 283.8 88.0 S 195.8 Depreciation and amortization Earnings before interest and taxes (EBIT, or operating income) $ 90.0 $ 263.0 Less interest 60.0 Earnings before taxes (EBT) Taxes (40%) S 203.0 78.3 81.2 S 117.5 S 121.8 Net income before preferred dividends Preferred dividends 4.0 S 113.5 4.0 Net income S 1 17.8 Additional information: 2009 2010 $57.5 $56.0 Common Dividends $53.0 $64.8 Addition to Retained Earnings Common Stock Price Outstanding Shares (in millions) WACC 20 23 50 50 5% 6%
Transcribed Image Text:ASSETS 2010 2009 LIABILITIES AND EQUITY 2010 2009 Cash and equivalents Short-term investments $ 10 S 15 S 60 Accounts payable $ 30 65 Notes payable 110 60 Accounts receivable 375 315 Accruals 140 130 S 310 S 220 Total current liabilities Long-term bonds Inventories 615 S1,000 415 Total current assets S 810 754 580 Net plant and equipment 1,000 870 Total liabilities S1,064 S 800 Preferred stock (400,000 shares) 40 40 Common stock (50,000,000 shares) Retained eamings Total common equity Total liabilities and equity 130 130 766 710 $2,000 S 89% $2,000 $ 840 $1,680 Total assets S1,680 2010 2009 Net sales $3,000.0 $2,850.0 Operating costs excluding depreciation and amortization Earnings before interest, taxes, depreciation, and amortization (EBITDA) 2,616.2 S 383.8 2,497.0 S 353.0 Depreciation 100.0 90.0 Amortization 0.0 0.0 S 100.0 S 283.8 88.0 S 195.8 Depreciation and amortization Earnings before interest and taxes (EBIT, or operating income) $ 90.0 $ 263.0 Less interest 60.0 Earnings before taxes (EBT) Taxes (40%) S 203.0 78.3 81.2 S 117.5 S 121.8 Net income before preferred dividends Preferred dividends 4.0 S 113.5 4.0 Net income S 1 17.8 Additional information: 2009 2010 $57.5 $56.0 Common Dividends $53.0 $64.8 Addition to Retained Earnings Common Stock Price Outstanding Shares (in millions) WACC 20 23 50 50 5% 6%
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