Cumberland Industries December 31 Balance Sheets
(in thousands of dollars)
				2016	2015
Assets
Cash and cash equivalents				$91,450	$74,625
Short-term investments				11,400	15,100
Accounts Receivable				108,470	85,527
Inventories				38,450	34,982
Total current assets				$249,770	$210,234
Net fixed assets				67,000	42,436
Total assets				$316,770	$252,670
Liabilities and equity
Accounts payable				$30,761	$23,109
Accruals				30,405	22,656
Notes payable				12,717	14,217
Total current liabilities				$73,883	$59,982
Long-term debt				80,263	63,914
Total liabilities				$154,146	$123,896
Common stock					$90,000
Retained earnings					38,774
Total common equity					$128,774
Total liabilities and equity					$252,670
a. Cumberland Industries' most recent sales were $455,000,000; operating costs (excluding depreciation) were equal to 85% of sales; net fixed assets were $67,000,000; depreciation amounted to 10% of net fixed assets; interest expenses were $8,550,000; the state-plus-federal corporate tax rate was 40% and Cumberland paid 25% of its net income out in dividends. Given this information, construct Cumberland's income statement. Also calculate total dividends and the addition to retained earnings.
							The input information required for the problem is outlined in the "Key Input Data" section below. Using this data and the balance sheet above, we constructed the income statement shown below.
							Key Input Data for Cumberland Industries				2016
(Thousands of dollars)
Sales Revenue
Expenses (excluding depreciation) as a percent of sales
Net fixed assest
Depr. as a % of net fixed assets
Tax rate
Interest expense
Dividend Payout Ratio
Cumberland Industries: Income Statement (Thousands of dollars)				2016
Sales
-Operating costs excluding depreciation:
EBITDA
-Depreciation (Cumberland has no amortization charges):
EBIT
-Interest expense:
EBT
-Taxes (40%):
Net income:
-Common dividends:
-Addition to retained earnings:
b. Cumberland Industries' partial balance sheets are shown above. Cumberland issued $10,000,000 of new common stock in the most recent year. Using this information and the results from part a, fill in the missing values for common stock, retained earnings, total common equity, and total liabilities and equity.