1. From the above income statement and balance sheet for Gerrard Construction Co. What other financial statements are required?

A. Statement of cash flows

B. Statement of changes in stockholders' equity

C. Both statement of cash flows and statement of changes in stockholders' equity

D. None

2. Indicate the note disclosures that should be provided by Gerrard Construction Co. (Select all that apply.)

A. The effects of accounting changes

B. Pension and post-retirement plans

C. Contingencies and commitments

D. Events subsequent to the balance sheet

E. Change in equity

F. Number of employees

G. Gross profit & Net profit

H. Company's effective income tax rate

I. Details of the company's employee benefit

J. Significant accounting policies

K. Earnings per share

3. Gerrard Construction Co. wishes to lease some new earthmoving equipment from Caterpillar on a long-term basis. What impact (increase, decrease, or no effect) would a capital lease of $3.7 million have on the company's debt ratio and debt/equity ratio?

A. Increase

B. Decrease

C. No effect

4-1. Calculate the amount of dividends declared and paid during the year ended December 31, 2016.

4-2. Review the answer from part f-1. At this time. Assume that Gerrard Construction Co. had 1,180,000 shares of $1 par value common stock outstanding throughout 2016, and that the market price per share of common stock at December 31, 2016, was $18.77. Calculate the following profitability measures for the year ended December 31, 2016:

4-3. Calculate Price/earnings ratio.

4-4. Calculate Dividend Yield and Dividend Payout Ratio.

Please show work where necessary for study purposes.

Gerrard Construction Co. is an excavation contractor. The following summarized data (in thousands) are taken from the December 31, 2016, financial statements: For the Year Ended December 31, 2016: Net revenues Cost of services provided Depreciation expense Operating income Interest expense Income tax expense 31.400 11.400 5,000 S 15.000 3,400 3,200 $ 8,400 Net income At December 31, 2016: Assets $ 2,800 10,100 Cash and short-term investments Accounts receivable, net 83,400 Property, plant, and equipment, net $96,300 Total assets Liabilities and Stockholders' Equity Accounts payable Income taxes payable Notes payable (long term) Paid-in capital Retained earnings 1,700 1,300 51,200 13,000 29.100 Total liabilities and stockholders' equity $96,300 At December 31, 2015, total assets were $80,900 and total stockholders' equity was $35,200. There were no changes in notes payable or paid-in capital during 2016. Gerrard Construction Co. is an excavation contractor. The following summarized data (in thousands) are taken from the December 31, 2016, financial statements: For the Year Ended December 31, 2016: Net revenues Cost of services provided Depreciation expense Operating income Interest expense Income tax expense 31.400 11.400 5,000 S 15.000 3,400 3,200 $ 8,400 Net income At December 31, 2016: Assets $ 2,800 10,100 Cash and short-term investments Accounts receivable, net 83,400 Property, plant, and equipment, net $96,300 Total assets Liabilities and Stockholders' Equity Accounts payable Income taxes payable Notes payable (long term) Paid-in capital Retained earnings 1,700 1,300 51,200 13,000 29.100 Total liabilities and stockholders' equity $96,300 At December 31, 2015, total assets were $80,900 and total stockholders' equity was $35,200. There were no changes in notes payable or paid-in capital during 2016