Amigo Software Inc. has total assets of $864,000, current liabilities of $166,000, and long-term liabilities of $149,000. There is $96,000 in preferred stock outstanding. Thiny thousand shares of common stock have been issued a. Compute book value (net worth) per share. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Book value per share $ 18.30 b. If there is $55,300 in earnings available to common stockholders and the firm's stock has a P/E of 28 times earnings per share, what is the current price of the stock? (Do not round intermediate calculations. Round your final answer to 2 decimal places.) Current price Pray 6 of 10 Next S 42 For December 31, 20X1, the balance sheet of Baxter Corporation was as follows Current Assets Cash Accounts receivable. Inventory Prepaid expenses Fixed Assets Gross plant and equipment Less: Accumulated depreciation Net plant and equipment Total assets Liabilities $ 15,000 Accounts payable. 20,000 Notes payable 30,000 Bonds payable 12,500 Stockholders' Equity $255,000 Preferred stock (51,000) Common stock Paid in Capital $ 204,000 Retained earnings $ 281,500 Total liabilities and stockholders' equity $ 17,000 25,000 55,000 $ 25,000 60,000 30,000 69,500 $281,500 Sales for 20X2 were $245,000, and the cost of goods sold was 60 percent of sales. Selling and administrative expense was $24,500. Depreciation expense was 8 percent of plant and equipment (gross) at the beginning of the year Interest expense for the notes payable was 10 percent, while the interest rate on the bonds payable was 12 percent. This interest expense is based on December 31, 20X1 balances. The tax rate averaged 20 percent. $2,500 in preferred stock dividends were paid, and $5,500 in dividends were paid to common stockholders. There were 10,000 shares of common stock outstanding. During 20X2, the cash balance and prepaid expenses balances were unchanged. Accounts receivable and inventory increased by 10 percent A new machine was purchased on December 31, 20X2, at a cost of $40,000. Accounts payable increased by 20 percent. Notes payable increased by $6,500 and bonds payable decreased by $12,500, both at the end of the vear. The preferred stock common stock, and capital caid in excess of par accounts did not chance Return to question Baxter Corporation 20X2 Income Statement Sales $ 245,000 Cost of goods sold 147,000 ( Gross profit $ 98,000 Selling and administrative expense 24,500 Depreciation expense 20,400 Operating profit $ 53,100 Interest expense 9,100 Earnings before taxes S 44,000 Taxes 8,800 Earnings after taxes S 35,200 Preferred stock dividends 2,500 Earnings available to common stockholders S 32,700 Shares outstanding 10,000 Earnings per share S 3.27 Answer is complete but not entirely correct. Baxter Corporation 20X2 Statement of Retained Earnings Retained earnings balance, January 1, 20X2 69,500 Add: Earnings available to common stockholders, 20X2 35,200 Less: Cash dividend declared in 20X2 8,000x Retained earnings balance, December 31, 20X2 $ 96,700 Answer is not complete. Baxter Corporation 20X2 Balance Sheet Assets Liabilities and Stockholders' Equity Cash Current Assets: Accounts receivable Inventory Prepaid expenses Accounts payable 0000 S 15,000 Notes payable 22,000 Bonds payable 000 20,400 31,500 42.500 33,000 12.500 Total current assets $ 82.500 Total liabilities $ 94,400 Stockholders' Equity Fixed assets: Preferred stock S 295,000 Common stock Less: Accumulated depreciation 71,400 Capital paid in excess of par Net plant and equipment S 366,400 Retained earnings 0000 S 25,000 60,000 30,000 96,700 Total stockholders' equity $ 211,700 Total liabilities and stockholders' S 448,900 306,100 Total assets equity 300 b. Compute the book value per common share for both 20X1 and 20X2 for the Crosby Corporation. (Round your answers to 2 decimals places.) Answer is not complete. 20X1 Book value 20X2 S 9.42 to search O jo < Prev 10 of 10 Next hul For the Year Ended December 31, 20X2 Cash flows from operating activities Net income S 160,000 Adjustments to determine cashflow from operating activities: Decrease in prepaid expenses Increase in accounts receivable Increase in inventory Decrease in prepaid expenses Increase in accounts receivable Decrease in accrued expenses Total adjustments Net cash flows from operating activities Cash flows from investing activities 000000 150,000 (50,000) (20,000) 20,000 190,000 (20,000) 270,000 $ 430,000 Increase in plant and equipment Decrease in investments Net cash flows from investing activities Cash flows from financing activities Increase in bonds payable Preferred stock dividends paid Common stock dividends paid Net cash flows from financing activities Net increase in cash flows (400,000) 10,000 C S (390,000) 000 0 s 50,000 (10,000) (50,000) S (10,000) $ 30,000 Assets Current assets: Cash Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments (long-term securities) Gross plant and equipment Less: Accumulated depreciation Net plant and equipment Total assets Liabilities and Stockholders' Equity Current liabilities: Accounts payable Notes payable Accrued expenses Total current liabilities Long-term liabilities: Bonds payable, 28x2 Total liabilities Stockholders' equity: Preferred stock, $100 par value Common stock, $1 par value Capital paid in excess of par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity. Comparative Balance Sheets For 2001 and 20x2 Year-End 20x1 70,000 300,000 410,000 50,000 $530,000 30,000 $2,000,000 1,000,000 1,000,000 $1,910,000 Year-End 2802 $ 2,400,000 1,150,000 $100,000 350,000 430,000 30,000 $910,000 70,000 1,250,000 $2,230,000 $ 250,000 400,000 70,000 $ 720,000 78,000 $790,000 $ 90,000 120,000 410,000 500,000 51,120,000 $1,910,000 $ 440,000 400,000 50,000 $ 890,000 120,000 $1,010,000 $ 90,000 120,000 410,000 600,000 $1,220,000 $2,230,000 Refer to the following financial statements for Crosby Corporation: CROSBY CORPORATION Income Statement For the Year Ended December 31, 20x2 Sales $ 2,200,000 Cost of goods sold 1,300,000 Gross profit $ 900,000 Selling and administrative expense 420,000 Depreciation expense 150,000 Operating income $ 330,000 Interest expense 90,000 Earnings before taxes $ 240,000 Taxes 80,000 Earnings after taxes $ 160,000 Preferred stock dividends 10,000 Earnings available to common stockholders $ 150,000 Shares outstanding 120,000 Earnings per share $ 1.25 Statement of Retained Earnings For the Year Ended December 31, 20x2 Frantic Fast Foods had earnings after taxes of $970,000 in 20X1 with 378,000 shares outstanding. On January 1, 20X2, the firm issued 34,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after taxes increased by 23 percent a. Compute earnings per share for the year 20X1. (Round your answer to 2 decimal places.) Answer is complete and correct. Earnings per shareS 2.57 b. Compute earnings per share for the year 20X2. (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. Earnings per share $ 6.06 Retur