Question

# Practice Quiz 1 Use the following information to answer questions 1 through 5.                              &

Practice Quiz 1

Use the following information to answer questions 1 through 5.

Balance Sheet

2009        2010                                                                 2009       2010

Cash                             \$  3,300  \$   2,700            Accounts payable                        \$  9,600   \$12,900

Accounts receivable             8,100       9,600            Long-term debt                             17,800     23,400

Inventory                         13,500     14,800            Preferred stock                              10,000     10,000

Common stock                              12,000     14,000

Net fixed assets                    46,900     47,100            Retained earnings                                      22,400     13,900

Total assets                    \$71,800   \$74,200            Total liabilities and equity             \$71,800   \$74,200

Income Statement, 2010

Net Sales                       \$73,500

Costs                               48,600

Depreciation                       6,300

EBIT                               18,600

Interest                              1,700

Taxable income                 16,900

Taxes                               5,800

Net Income                      \$11,100

No. of common shares outstanding = 10,000

Preferred dividends paid   =             \$    500

1.     What is the amount of the non-cash expenses for 2010?

2.     What is the book value per share for 2010?

3.     What is the change in net working capital for 2010?

4.     What is the earnings per share for 2010?

5.         What is the debt ratio for 2010?

1. Non Cash Expense : Depreciation =\$6300

 Part-2 Book Value per Share = ( Equity- Preferred Stock)/ No. of Common Stock =((10000+14000+13900)-10000)/10000= \$2.79 per Share Part-3 Change in Net Working Capital for 2010 Ending Working Capital- Beginning Working Capital =(2700+9600+14800-12900)-(3300+8100+13500-9600)=-\$1100 Part-4 Earing per share for 2010= (Net Income- Preference dividend)/Outstanding shares =(11100-500)/10000=\$1.06 per share Part-5 Debt Ratio for 2010= Total Debt / Total Asset =(12900+23400)/(2700+9600+14800)=1.34 times

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