The financial statements for Armstrong and Blair companies for the current year are summarized below Statenent of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Other non-current assets 35,000 40,000 100,000 22,000 30,000 40,000 400,000 308,000 140,000 85,000 Total assets $ 800,000 $ 400,000 $ 100,000 60,000 150,000 30,000 Current liabilities %2. Long-term debt (10x) Share capital Contributed surplus Retained earnings 50,000 70,000 500,000 110,000 70,000 $ 800, e00 60, 000 Total liabilities and shareholders' equity $4 400,000 Statement of Earnings Sales revenue (1/3 on credit) Cost of sales Expenses (including interest and income tax) Net- $ 450,000 (245,000) (160,000) $ 45,000 $ 810,000 (405,000) (315,000) $ 90,000 Selected data from the financial statements for the previous year follows: Armstrong Blair Соmpany Company $ 20,000 92,000 60,000 $ 40,000 48,000 70,000 Accounts receivable (net) Inventory Long-term debt Other data: Share price year-end Income tax rate 18 15 30% $150,000 30% Dividends declared and paid Shares Outstanding 36,000 15,000 50,000
The financial statements for Armstrong and Blair companies for the current year are summarized below Statenent of Financial Position Cash Accounts receivable (net) Inventory Property, plant, and equipment (net) Other non-current assets 35,000 40,000 100,000 22,000 30,000 40,000 400,000 308,000 140,000 85,000 Total assets $ 800,000 $ 400,000 $ 100,000 60,000 150,000 30,000 Current liabilities %2. Long-term debt (10x) Share capital Contributed surplus Retained earnings 50,000 70,000 500,000 110,000 70,000 $ 800, e00 60, 000 Total liabilities and shareholders' equity $4 400,000 Statement of Earnings Sales revenue (1/3 on credit) Cost of sales Expenses (including interest and income tax) Net- $ 450,000 (245,000) (160,000) $ 45,000 $ 810,000 (405,000) (315,000) $ 90,000 Selected data from the financial statements for the previous year follows: Armstrong Blair Соmpany Company $ 20,000 92,000 60,000 $ 40,000 48,000 70,000 Accounts receivable (net) Inventory Long-term debt Other data: Share price year-end Income tax rate 18 15 30% $150,000 30% Dividends declared and paid Shares Outstanding 36,000 15,000 50,000
Financial Accounting: The Impact on Decision Makers
10th Edition
ISBN:9781305654174
Author:Gary A. Porter, Curtis L. Norton
Publisher:Gary A. Porter, Curtis L. Norton
Chapter2: Financial Statements And The Annual Report
Section: Chapter Questions
Problem 2.8E: Income Statement Ratio The income statement of Holly Enterprises shows operating revenues of...
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