A. Key input data for Vanguard Pharmaceuticals is listed below. This information includes the sales revenue from last year, the operating costs (excluding depreciation) as a % of sales, the total amount of net fixed assets at the end of last year, depreciation as a % of net fixed assets, total interest expense, the tax rate, and the % of net income that Vanguard paid out as dividends (the Dividend Payout Ratio). Given this information, construct Vanguard's income statement. Also calculate common dividends and the addition to retained earnings.
							The input information required for the problem is outlined in the "Key Input Data" section below. Using this data and the balance sheet above, we constructed the income statement shown below.
							Key Input Data for Vanguard Pharmaceuticals				2016
(Thousands of dollars)
Sales Revenue				$227,500
Expenses (excluding depreciation) as a percent of sales				68.0%
Net fixed assets				$33,500
Depr. as a % of net fixed assets				8.0%
Tax rate				32.0%
Interest expense				$4,275
Dividend Payout Ratio				20.0%
Vanguard Pharmaceuticals: Income Statement (Thousands of dollars)				2016
Sales
Operating costs excluding depreciation
EBITDA
Depreciation (Vanguard has no amortization charges)
EBIT
Interest expense
EBT
Taxes
Net income
Common dividends
Addition to retained earnings
B. Vanduard Pharmaceuticals' partial balance sheets are shown below. Vanguard issued $10,000,000 of new common stock in the most recent year. Using this information and the results from part a, fill in the missing values for common stock, retained earnings, total common equity, and total liabilities and equity.
							Dollar value of common stock issued (in thousands of dollars)				$10,000
Vanguard Industries December 31 Balance Sheets
(in thousands of dollars)
				2016	2015
Assets
Cash and cash equivalents				$136,920	$74,625
Short-term investments				11,400	15,100
Accounts Receivable				108,470	85,527
Inventories				38,450	34,982
Total current assets				$295,240	$210,234
Net fixed assets				33,500	42,436
Total assets				$328,740	$252,670
Liabilities and equity
Accounts payable				$30,761	$23,109
Accruals				30,405	22,656
Notes payable				12,717	14,217
Total current liabilities				$73,883	$59,982
Long-term debt				80,263	63,914
Total liabilities				$154,146	$123,896
Common stock					$90,000
Retained earnings					38,774
Total common equity					$128,774
Total liabilities and equity					$252,670
Check for balancing (this should be zero):