Reliable Auto Parts has 5,000 shares of common stock outstanding. The company also has the following amounts in revenue and expense accounts. Sales Revenue is $85000, General and admin expenses $7500, Interest expense $3500, Depreciation expense $5000, Preferred Stock dividends $500, Selling expense $4000, Cost of goods sold $50000. Calculate (a) cash flow from operations. (b) earnings available to common stockholders. (c) earnings per share. assume 40 percent tax rate
Reliable Auto Parts has 5,000 shares of common stock outstanding. The company also has the following amounts in revenue and expense accounts. Sales Revenue is $85000, General and admin expenses $7500, Interest expense $3500, Depreciation expense $5000, Preferred Stock dividends $500, Selling expense $4000, Cost of goods sold $50000. Calculate (a) cash flow from operations. (b) earnings available to common stockholders. (c) earnings per share. assume 40 percent tax rate
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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Reliable Auto Parts has 5,000 shares of common stock outstanding. The company also has the following amounts in revenue and expense accounts.
Sales Revenue is $85000, General and admin expenses $7500, Interest expense $3500,
Calculate
(a) cash flow from operations.
(b) earnings available to common stockholders.
(c) earnings per share.
assume 40 percent tax rate
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