3.

Plano Co. 12/31/16
Partial Trial Balance Data	Debits		Credits
Sales revenue			660,000
Interest revenue			72,000
Gain on sale of investments			122,000
Cost of goods sold	480,000
Selling expenses	138,000
Restructuring costs	38,000
Interest expense	28,000
General and administrative expenses	58,000

Plano had 50,000 shares of stock outstanding throughout the year. Income tax expense has not yet been accrued. The effective tax rate is 30%.

Required:

Prepare a multiple-step income statement with earnings per share disclosure. (Amounts to be deducted should be indicated with a minus sign. Round EPS answer to 2 decimal places.)

4.

Berry Farm produces organic tomatoes and strawberries. In June 2016, it transported 110 boxes of strawberries with a price of $16 per box to the Bay Farmers Market. Berry Farm paid an upfront fee of $120 to present its products at the market for one week, and the market earns a 25% profit margin on each item sold, but Berry Farm is responsible for any items that remain unsold at the end of the week.

Required:

The market was able to sell 65 boxes of strawberries to customers. How much revenue should Berry Farm recognize with respect to this transaction?

REVENUE: ?

5.

The following partial income statement and balance sheet information (in $ millions) comes from the Annual Report of Saratoga Springs Co. for the year ending 12/31/2016:

	Year ended 12/31/2016
Net sales		12,389
Total operating revenue		12,389
Cost of goods sold		5,767
Sales, general & administrative		2,269
Interest expense		616
Income before tax		867
Net income		642

	12/31/2016			12/31/2015
Cash and cash equivalents		1,175			104
Receivables, net		2,130			784
Inventories		1,495			799
Land, buildings and equipment at cost, net		17,740			6,168
Total assets		22,540			7,855
Accounts payable		8,942			3,631
Total current liabilities		8,942			3,631
Long-term debt		7,631			3,541
Deferred income taxes		591			623
Total liabilities		17,164			7,795
Minority interest		768			0
Retained earnings		4,608			60
Total stockholders' equity		5,376			60

Required:

Compute the profit margin on sales for 2016 of Saratoga Springs Co. (Round your answer to 1 decimal place.) PROFIT MARGIN: ?%

Required:

Compute the return on stockholders' equity for 2016 of Saratoga Springs Co. (Round your answer to 1 decimal place.) Return on stockholders equity: ? %