Cash $ 480,000 500.000 80,000 $1,060,000 BAF330 - Chapter 2 Homework M&M Manufacturing, Inc. Balance Sheet At December 31, 2012 ($000) Assets Liabilities and Equity Current assets Current liabilities $ 140,000 Accounts payable Marketable securities 260,000 Notes payable Accounts receivable 650,000 Accruals Inventories 800,000 Total current Total current assets $1,850,000 liabilities Long-term debt Gross fixed assets $3,780,000 Bonds outstanding Less: Accumulated Bank debt (long-term) depreciation 1,220,000 Total long-term debt Net fixed assets $2.560,000 Total liabilities Total assets $4,410,000 Stockholders' equity Preferred stock Common stock (at par) Paid-in capital in excess of par Retained earnings Total stockholders' equity Total liabilities and equity Fixed assets $1,300,000 260,000 $1,560,000 $2.620.000 $ 180,000 200,000 810,000 600.000 $1,790,000 $4,410,000 M&M Manufacturing, Inc. Income Statement For Year Ended December 31, 2012 ($000) $6,900,000 4.200.000 $2,700,000 $ 750,000 1,150,000 210,000 235,000 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses Sales expense General and administrative expense Leasing expense Depreciation expense Total operating expenses Earnings before interest and taxes Less Interest expense Net profit before taces Less: Taxes Net profits after taxes Less: Preferred stock dividends Earnings available for common stockholders Less: Dividends To retained earnings Per share data Earnings per share (EPS) Dividends per share (DPS) Price per share 2,345,000 $ 355,000 85.000 $ 270,000 81.000 $ 189,000 10.800 $ 178,200 75.000 $ 103,200 $ $ 1.43 0.60 15.85 How much cash and near cash does Mand M have at vear-end 20122 Sales expense $ 750,000 General and administrative expense 1,150,000 Leasing expense 210,000 Depreciation expense 235.000 Total operating expenses 2.345.000 Earnings before interest and taxes $ 355,000 Less Interest expense 85.000 Net profit before taces $ 270,000 Less: Taxes 81.000 Net profits after taxes $ 189,000 Less: Preferred stock dividends 10,800 Earnings available for common stockholders $ 178,200 Less: Dividends 75.000 To retained earnings $ 103,200 Per share data Earnings per share (EPS) $ 1.43 Dividends per share (DPS) $ 0.60 Price per share $ 15.85 1. How much cash and near cash does M and M have at year-end 2012? 2. What was the original cost of all of the firm's real property that is currently owned? 3. How much in total liabilities did the firms have at year-end 2012? 4. How much did M and Mowe for credit purchases at year-end 2012? 5. How much did the firm sell during 2012? 6. What is the current ratio for M&M Manufacturing? 7. How long does it take to turnover inventory? 8. What is the average collection period? 9. What is the debt ratio? 10. What is the gross profit margin
