The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable nventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) .ess interest Earnings before taxes (ERT) 2021 $ 4,200 17,500 20,300 $ 42,000 28,000 $ 70,000 $ 27,531 12,369 5,000 $ 44,900 9,000 $ 53,900 3,864 12,236 $ 16,100 $70,000 2021 $112,000 104,160 2,240 $ 5,600 840 $ 4760
The balance sheet and income statement shown below are for Koski Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled Balance Sheet (Millions of $) Assets Cash and securities Accounts receivable nventories Total current assets Net plant and equipment Total assets Liabilities and Equity Accounts payable Accruals Notes payable Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Total common equity Total liabilities and equity Income Statement (Millions of $) Net sales Operating costs except depreciation Depreciation Earnings before interest and taxes (EBIT) .ess interest Earnings before taxes (ERT) 2021 $ 4,200 17,500 20,300 $ 42,000 28,000 $ 70,000 $ 27,531 12,369 5,000 $ 44,900 9,000 $ 53,900 3,864 12,236 $ 16,100 $70,000 2021 $112,000 104,160 2,240 $ 5,600 840 $ 4760
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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Transcribed Image Text:### Financial Statements of Koski Inc. (2021)
#### Balance Sheet (Millions of $)
**Assets**
- Cash and securities: $4,200
- Accounts receivable: $17,500
- Inventories: $20,300
- **Total current assets**: $42,000
- Net plant and equipment: $28,000
- **Total assets**: $70,000
**Liabilities and Equity**
- Accounts payable: $27,531
- Accruals: $12,369
- Notes payable: $5,000
- **Total current liabilities**: $44,900
- Long-term bonds: $9,000
- **Total liabilities**: $53,900
- Common stock: $3,864
- Retained earnings: $12,236
- **Total common equity**: $16,100
- **Total liabilities and equity**: $70,000
---
#### Income Statement (Millions of $)
- **Net sales**: $112,000
- Operating costs except depreciation: $104,160
- Depreciation: $2,240
- **Earnings before interest and taxes (EBIT)**: $5,600
- Less interest: $840
- **Earnings before taxes (EBT)**: $4,760
- Taxes (25%): $1,190
- **Net income**: $3,570
---
#### Other Data
- Shares outstanding (millions): 500.00
- Common dividends (millions of $): $1,249.50
- Interest rate on notes payable & Long-term bonds: 6%
- Federal plus state income tax rate: 25%
- **Year-end stock price**: $85.68
---
#### Question
What is the firm’s dividends per share? Do not round your intermediate calculations.
Options:
- A. $2.50
- B. $7.14
- C. $1.87
- D. $4.64
- E. $9.52
---
This financial information provides a detailed overview of Koski Inc.'s balance sheet and income statement for the year 2021, enabling a comprehensive understanding of its financial health and performance. Analyzing these statements helps in making informed decisions regarding investments, financial planning, and management practices.
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