Balance Sheet Statement as of December 31, 201X Assets Cash Marketable securities Accounts receivable $150,000 $200,000 $150,000 Inventories $50,000 Prepaid taxes and insurance $30,000 Manufacturing plant at cost Less accumulated depreciation $600,000 $100,000 Net fixed assets $500,000 Goodwill $20,000 Liabilities and Shareholders' Equity Notes payable Accounts payable Income taxes payable $50,000 $100,000 $80,000 Long-term mortgage bonds $400,000 Preferred stock, 6%, $100 par value (1,000 shares) Common stock, $15 par value (10,000 shares) Capital surplus Retained earnings $100,000 $150,000 $150,000 $70,000
Balance Sheet Statement as of December 31, 201X Assets Cash Marketable securities Accounts receivable $150,000 $200,000 $150,000 Inventories $50,000 Prepaid taxes and insurance $30,000 Manufacturing plant at cost Less accumulated depreciation $600,000 $100,000 Net fixed assets $500,000 Goodwill $20,000 Liabilities and Shareholders' Equity Notes payable Accounts payable Income taxes payable $50,000 $100,000 $80,000 Long-term mortgage bonds $400,000 Preferred stock, 6%, $100 par value (1,000 shares) Common stock, $15 par value (10,000 shares) Capital surplus Retained earnings $100,000 $150,000 $150,000 $70,000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Consider the following balance-sheet entries for Delta Corporation:
(a) Compute the following for the firm:
Current assets:$ ________________
Current liabilities:$ _____________
Working capital:$ _______________
Shareholders' equity:$ _________ (b) If the firm had a net income after taxes of $500,000, what are the earnings per share?
(c) When the firm issued its common stock, what was the market price of the stock per share?
Transcribed Image Text:Balance Sheet Statement as of December 31, 201X
Assets
Cash
Marketable securities
Accounts receivable
$150,000
$200,000
$150,000
Inventories
$50,000
Prepaid taxes and insurance
$30,000
Manufacturing plant at cost
Less accumulated depreciation
$600,000
$100,000
Net fixed assets
$500,000
Goodwill
$20,000
Liabilities and Shareholders' Equity
Notes payable
Accounts payable
Income taxes payable
$50,000
$100,000
$80,000
Long-term mortgage bonds
$400,000
Preferred stock, 6%, $100 par value (1,000 shares)
Common stock, $15 par value (10,000 shares)
Capital surplus
Retained earnings
$100,000
$150,000
$150,000
$70,000
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