Assets Current assets Cash The Retail Group, Inc Statement of Financial Position December 31, 20X9 (all amounts in millions) Liabilities and Stockholders' Equity Current liabilities $120 Accounts payable 9.0 Salaries payable 8 5.5 Dividends payable 6 5 Interest payable 5 72 Total current liabilities 10.9 34,2 $90 Accounts receivable (net) Marketable securities Prepaid insurance Inventory Total current assets (Statement of Financial Position continued on next slide) 50 The Retail Group, Inc Statement of Financial Position (continued) December 31, 20X9 all amounts in millions) Assets Llabilities and Stockholders Equity Property, plant, & equipment Long term liabilities Equipment (net) Notes payable 120 Buildings (net) 11.0 Bonds payable 140 Land 40 Total long-term liabilities 260 Total property, plant, & equipment 200 Total liabilities $36.9 Other assets Stockholders' equity Investments 80 Common stock 150 Patents 5 Retained earnings 108 Total other assets 85 Total stockholders equity 25.8 Total liabilities and Total assets $6227 stockholders' equity $6227 $850 51.0 340 The Retail Group, Inc Income Statement For the Year Ended December 31, 20X9 Sales Cost of goods sold Gross profit Selling expenses Sales salaries and commissions $82 Insurance expense 1.5 Advertising expense 2.5 Utilities expense 2.4 Depreciation expense equipment Delivery expense Total selling expenses $158 (Income Statement continued on next slide) The Retailer Group Inc. Income Statement continued For the Year Ended December 31, 20x9 General and administrative expenses Executive and administrative salaries 579 Utilities expense 2.5 Rental expense 7 Depreciation expense bolding 6 Patent amortization expense Total general and administrative expenses 123 Total operating expenses 201 Operating income 59 Nonoperating items Interest revenue (52) Interest expense 14 Nonoperating expense (net) 12 Income before income taxes 4.7 Income tax expense Net income $28 Additional Financial Statement Information for The Retail, Group Inc. 800,000 weighted average shares of common stock were issued and outstanding throughout 20X9. The accounts receivable balance (net of uncollectible accounts) on December 31, 20X8 was $8,400,000. All sales are credit sales. The inventory balance on December 31, 20X8 was $6,600,000. $2,000,000 in total dividends were declared during 20X9. Total stockholders' equity on December 31, 20X8 was $25,000,000 Total assets on December 31, 20X8 were $58,600,000. The market price per share of common stock on December 31, 20X9 was $49. There was no preferred stock. 16. 20X9 Rate of Return on Common Shareholders' Equity 17. 20X9 Earnings per Share 18. 20X9 Price/Earnings Ratio 19. 20X9 Dividend Yield 20. 20X9 Dividend Payout N 34