5 Cengage Assignment eBook The Hopewell Pharmaceutical Company's balance sheet and income statement for last year...

Transcribed Image Text:

5 Cengage Assignment eBook The Hopewell Pharmaceutical Company's balance sheet and income statement for last year are as follows: Balance Sheet (in Millions of Dollars) 6. Assets Liabilities and Equity 7. Cash and marketable securities $1,200 Accounts payable*** $800 Accounts receivable* 1,400 Accrued liabilities 8. Inventories** 900 (salaries and benefits) 200 6 9. Other current assets 200 Other current liabilities 700 10.- Total current assets $3,700 Total current liabilities $1,700 Plant and equipment (net) 2,000 Long-term debt and other Other assets 1,100 liabilities 1,000 Total assets $6,800 Common stock 1,600 Retained earnings 2,500 Total stockholders' equity $4,100 Total liabilities and equity $6,800 *Assume that average accounts receivable are the same as ending accounts receivable. **Assume that average Inventory over the year was the same as ending inventory. Assume that average accounts payable are the same as ending accounts payable. Income Statement (in Millions of Dollars) Net sales $6,000 Cost of sales 1,300. Selling, general, and administrative expenses 2,400 Other expenses 700 Total expenses $4,400 Earnings before taxes 1,600 Taxes 640 Earnings after taxes (net income) $960 5 Cengage Assignment eBook The Hopewell Pharmaceutical Company's balance sheet and income statement for last year are as follows: Balance Sheet (in Millions of Dollars) 6. Assets Liabilities and Equity 7. Cash and marketable securities $1,200 Accounts payable*** $800 Accounts receivable* 1,400 Accrued liabilities 8. Inventories** 900 (salaries and benefits) 200 6 9. Other current assets 200 Other current liabilities 700 10.- Total current assets $3,700 Total current liabilities $1,700 Plant and equipment (net) 2,000 Long-term debt and other Other assets 1,100 liabilities 1,000 Total assets $6,800 Common stock 1,600 Retained earnings 2,500 Total stockholders' equity $4,100 Total liabilities and equity $6,800 *Assume that average accounts receivable are the same as ending accounts receivable. **Assume that average Inventory over the year was the same as ending inventory. Assume that average accounts payable are the same as ending accounts payable. Income Statement (in Millions of Dollars) Net sales $6,000 Cost of sales 1,300. Selling, general, and administrative expenses 2,400 Other expenses 700 Total expenses $4,400 Earnings before taxes 1,600 Taxes 640 Earnings after taxes (net income) $960