Eagle Company Balance Sheet December 31 Cash Accounts receivable (net) Other current assets Investments Plant and equipment (net) 2017 $ 30,000 50,000 90,000 55,000 500,000 $725,000 2016 $ 20,000 45,000 95,000 70,000 370,000 $600,000 2015 18,000 48,000 64,000 45,000 358,000 $533,000 $ 85,000 145,000 320,000 175,000 $725,000 $ 80,000 85,000 310,000 125,000 $600,000 $ 70,000 50,000 300,000 113,000 $533,000 Current liabilities Long-term debt Common stock, $10 par Retained eamings Eagle Company Income Statements For the Years Ended December 31 2017 $740,000 40,000 700,000 425,000 275,000 180,000 $ 95,000 2016 $600,000 30,000 570,000 350,000 220,000 150,000 $ 70,000 Sales revenue Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Operating expenses (including income taxes) Net income Further information: • Hint: you must compute dividends paid. The market price of Eagle's common stock was as follows: Year 2015 2016 2017 Total Dividend 2017 (45,000) Market price $7.00 $7.50 $8.50 2016(58,000)
Eagle Company Balance Sheet December 31 Cash Accounts receivable (net) Other current assets Investments Plant and equipment (net) 2017 $ 30,000 50,000 90,000 55,000 500,000 $725,000 2016 $ 20,000 45,000 95,000 70,000 370,000 $600,000 2015 18,000 48,000 64,000 45,000 358,000 $533,000 $ 85,000 145,000 320,000 175,000 $725,000 $ 80,000 85,000 310,000 125,000 $600,000 $ 70,000 50,000 300,000 113,000 $533,000 Current liabilities Long-term debt Common stock, $10 par Retained eamings Eagle Company Income Statements For the Years Ended December 31 2017 $740,000 40,000 700,000 425,000 275,000 180,000 $ 95,000 2016 $600,000 30,000 570,000 350,000 220,000 150,000 $ 70,000 Sales revenue Less: Sales returns and allowances Net sales Cost of goods sold Gross profit Operating expenses (including income taxes) Net income Further information: • Hint: you must compute dividends paid. The market price of Eagle's common stock was as follows: Year 2015 2016 2017 Total Dividend 2017 (45,000) Market price $7.00 $7.50 $8.50 2016(58,000)
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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Question
Determine Profit Margin,Asset Turnover,Earnings Per Share,Price-Earning Ratios, Pay out ratio and Debt to asset ratio for 2016 and 2017 and explain briefly whether or not the company experiences improvement in the financial positon and operating for the period from 2016 to 2017.
Transcribed Image Text:Eagle Company
Balance Sheet
December 31
2017
$ 30,000
50,000
90,000
55,000
500,000
$725,000
2016
$ 20,000
45,000
95,000
70,000
370,000
$600,000
2015
18,000
48,000
64,000
45,000
358,000
$533,000
Cash
Accounts receivable (net)
Other current assets
Investments
Plant and equipment (net)
$ 85,000
145,000
320,000
175,000
$725,000
$ 80,000
85,000
310,000
125,000
$600,000
$ 70,000
50,000
300,000
113,000
$533,000
Current liabilities
Long-term debt
Common stock, $10 par
Retained earnings
Eagle Company
Income Statements
For the Years Ended December 31
2017
$740,000
40,000
700,000
425,000
275,000
180,000
$ 95,000
2016
$600,000
30,000
570,000
350,000
220,000
150,000
$ 70,000
Sales revenue
Less: Sales returns and allowances
Net sales
Cost of goods sold
Gross profit
Operating expenses (including income taxes)
Net income
Further information:
• Hint: you must compute dividends paid.
• The market price of Eagle's common stock was as follows:
Year
|2015
2016
2017
Market price
| $7.00
$7.50
$8.50
2016(58,000)
Total Dividend 2017 (45,000)
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