a.

Income Statement for Xenon Manufacturing:

2008 2009

Total sales 202 212

Cost of sales

148

172

Gross Profit 54 40

Selling, general,

and administrative expenses

22

20

Research and development

8

7

Depreciation and amortization

4

3

Other income 4 6

Earnings before interest

and taxes (EBIT)24 16

Interest income (expense)

7

4

Pretax income 14 12

Taxes

4

3

Net Income 10 9

Consider the above Income Statement for Xenon Manufacturing. All values are in millions of dollars. If Xenon Manufacturing has

29

million shares outstanding, what is its EPS in

2008?

a. 0.41

b. 0.28

c. 0.35

d. 0.17

b.

Balance Sheet Assets Liabilities Current Assets Current Liabilities Cash 51 Accounts payable 35 Accounts receivable 23 6 Notes payable/short term debt Total current liabilities Inventories 19 41 Total current assets 93 Long-Term Assets Long-Term Liabilities O A. $1 million OB. - $1 million O C. $52 million OD. $7 million Long-Term Assets Long-Term Liabilities 117 Net property, plant, and equipment Total long-term assets 136 Long-term debt. Total long-term liabilities 117 136 177 Total liabilities Stockholders' Equity. Total liabilities and stockholders' Equity 33 Total assets. 210 210 The above diagram shows a balance sheet for a certain company. If the company buys new property, plant and equipment today using its entire cash balance, what will its net working capital be? O A. $1 million OB. - $1 million OC. $52 million D. $7 million