Cullumber Medical manufactures hospital beds and other institutional furniture. The company's comparative balance sheet and income statement for 2015 and 2016 follow. Cullumber Medical Comparative Balance Sheet As of December 31 2016 2015 Assets Current assets Cash $348,000 1,066,200 Accounts receivable, net $417,400 776,500 Inventory 748,000 681,000 Other current assets 303,000 247,000 Total current assets 2,465,200 2,121,900 Property, plant, & equipment, net 8,856,175 8,407,585 Total assets $11,321,375 $10,529,485 Liabilities and Stockholders' Equity Current liabilities $3,121,000 $2,846,000 Long-term debt 3,702,700 3,892,650 Total liabilities 6,823,700 6,738,650 History Bookmarks People Tab Window Help ACCT I X (5) Subscriptions - YouTube x W Ch 12: Homework + eyplus.com/courses/36019/assignments/3780450 Liabilities and Stockholders' Equity Current liabilities $3,121,000 $2,846,000 Long-term debt 3,702,700 3,892,650 Total liabilities 6,823,700 6,738,650 Preferred stock, $5 par value 58,700 58,700 Common stock, $0.25 par value 104,000 103,800 Retained earnings Total stockholders' equity 4,334,975 3,628,335 4,497,675 3,790,835 $11,321,375 $10,529,485 Total liabilities and stockholders' equity Cullumber Medical Comparative Income Statement and Statement of Retained Earnings For the Year Sales revenue (all on account) 2016 $10,240,000 5,363,000 2015 $9,614,000 5,298,700 Cost of goods sold Liabilities and Stockholders' Equity Current liabilities $3,121,000 $2,846,000 Long-term debt 3,702,700 3,892,650 Total liabilities 6,823,700 6,738,650 Preferred stock, $5 par value 58,700 58,700 Common stock, $0.25 par value 104,000 Retained earnings 103,800 3,628,335 4,334,975 Total stockholders' equity 4,497,675 3,790,835 Total liabilities and stockholders' equity $11,321,375 $10,529,485 Cullumber Medical Comparative Income Statement and Statement of Retained Earnings For the Year 2016 2015 Sales revenue (all on account) $10,240,000 $9,614,000 Cost of goods sold Gross profit 5,363,000 4,877,000 2,840,300 2,036,700 5,298,700 4,315,300 2,634,100 1,681,200 Operating expenses Net operating income Operating expenses 2,840,300 2,634,100 Net operating income 2,036,700 1,681,200 Interest expense 378,000 308,650 Net income before taxes 1,658,700 1,372,550 Income taxes (30%) 497,610 411,765 Net income $1,161,090 $960,785 Dividends paid Preferred dividends 2 9,450 Common dividends 29,450 425,000 454,450 460,000 Total dividends paid 489,450 Net income retained 706,640 471,335 Retained earnings, beginning of year 3,628,335 3,157,000 $3,628,335 Retained earnings, end of year $4,334,975 Your answer is correct. Calculate the earnings per share (average of 361,000 shares outstanding for the year) for 2016. (Round answer to 2 decimal places, eg. 2.55. Earning per share > 3.13 per share e Textbook and Media Attempts: 1 of 12 Calculate the price/earnings ratio (market price of $45 at year-end) for 2016. (Round answer to 2 decimal places, eg. 2.55.) Price/earnings ratio e Textbook and Media
