Balance Sheet

Assets Liabilities

Current Assets Current Liabilities

Cash 50 Accounts payable 42

Accounts receivable 22 Notes payable/short-term debt 7

Inventories 17

Total current assets 89 Total current liabilities 49

Long-Term Assets Long-Term Liabilities

Net property, plant,

and equipment 121 Long-term debt 128

Total long-term asset 121 Total Longterm Liabilities 128

Total Liabilities 177

Stockholders' Equity 33

Total Assets 210 Total Liabilities and 210

Stockholders' Equity

Q.1. The above diagram shows a balance sheet for a certain company. All quantities shown are in millions of dollars. What is the company's net working capital?

Q.2. Romo, Inc. has current assets of $1850, net fixed assets of $8,600, current liabilities of $1,600, and long term debt of $6,100. What is the value of the shareholders equity account for this firm?

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

Q.3 Consider the above Income Statement for Xenon Manufacturing. All values are in millions of dollars. If Xenon Manufacturing has 25 million shares outstanding, what is its EPS in 2009?

Q.4. Fyre, Inc., has sales of $625,000,costs of $260,000, depreciation expense of $79,000, interest expense of $43,000, and a tax rate of 35 percent. What is the net income for this firm?

Q.5. Suppose U.S corporation has 18 million shares outstanding at the end of 2008. If its Net earnings that year is equal to $10 million out of which it distributes dividends equivalent to $5 million, what is the earnings per share for the firm? What is dividends per share?