Use the following information to answer this question. Bayside, Inc. 2017 Income Statement ($ in thousands) Net sales $ 6,040 Cost of goods sold 4,200 Depreciation 400 Earnings before interest and taxes $ 1,440 Interest paid 30 Taxable income $ 1,410 Taxes 423 Net income $ 987
Use the following information to answer this question. Bayside, Inc. 2017 Income Statement ($ in thousands) Net sales $ 6,040 Cost of goods sold 4,200 Depreciation 400 Earnings before interest and taxes $ 1,440 Interest paid 30 Taxable income $ 1,410 Taxes 423 Net income $ 987
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
Use the following information to answer this question.
| Bayside, Inc. 2017 Income Statement ($ in thousands) |
|||
| Net sales | $ | 6,040 | |
| Cost of goods sold | 4,200 | ||
| 400 | |||
| Earnings before interest and taxes | $ | 1,440 | |
| Interest paid | 30 | ||
| Taxable income | $ | 1,410 | |
| Taxes | 423 | ||
| Net income | $ | 987 | |
| Bayside, Inc. 2016 and 2017 ($ in thousands) |
|||||||||||||
| 2016 | 2017 | 2016 | 2017 | ||||||||||
| Cash | $ | 115 | $ | 220 | Accounts payable | $ | 1,580 | $ | 1,510 | ||||
| Accounts rec. | 990 | 830 | Long-term debt | 810 | 610 | ||||||||
| Inventory | 1,705 | 2,040 | Common stock | 3,240 | 3,280 | ||||||||
| Total | $ | 2,810 | $ | 3,090 | 880 | 1,130 | |||||||
| Net fixed assets | 3,700 | 3,440 | |||||||||||
| Total assets | $ | 6,510 | $ | 6,530 | Total liab. & equity | $ | 6,510 | $ | 6,530 | ||||
What is the
Expert Solution
Step 1
Given,
The net income is $987
The common stock in the year 2016 is $3,240
The common stock in the year 2017 is $3,280
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