Question
Figure 1 Earnings per share for the last five years Year 1 st Quarter 2 nd Quarter 3 rd Quarter 4 th Quarter Yearly Total
Figure 1 | Earnings per share for the last five years | ||||
Year | 1stQuarter | 2ndQuarter | 3rdQuarter | 4thQuarter | Yearly Total |
2011 | $.23 | $.25 | $.19 | $.34 | $1.01 |
2012 | .26 | .28 | .27 | .41 | 1.22 |
2013 | .34 | .36 | .33 | .48 | 1.51 |
2014 | .35 | .37 | .34 | .49 | 1.55 |
2015 | .35 | .36 | .36 | .49 | 1.56 |
Figure 2 | |||
GLEN MOUNT FURNITURE COMPANY | |||
Balance Sheet | |||
December 31, 2015 | |||
Assets | |||
Current assets: | |||
Cash | $350,000 | ||
Marketable securities | 90,000 | ||
Accounts receivable | 5,000,000 | ||
Inventory | 7,000,000 | ||
Total current assets | 12,440,000 | ||
Other Assets: | |||
Investments | 5,000,000 | ||
Fixed Assets | |||
Plant and equipment | 27,060,000 | ||
Less: Accumulated depreciation | 4,000,000 | ||
Net plant and equipment | 23,060,000 | ||
Total assets | $ 40,500,000 |
Liabilities and Stockholders Equity | ||
Current liabilities: | ||
Accounts payable | $4,400,000 | |
Wages payable | 150,000 | |
Accrued expenses | 950,000 | |
Total current liabilities | 5,500,000 | |
Long-term liabilities | ||
Bonds payable, 10.625% | 12,000,000 | |
Stockholders equity | ||
Common stock, $1 par value, 2,000,000 shares | 2,000,000 | |
Capital in excess of par | 8,000,000 | |
Retained earnings | 13,000,000 | |
Total stockholders equity | 23,000,000 | |
Total liabilities and stockholders equity | 40,500,000 |
Figure 3 | |
GLEN MOUNT FURNITURE COMPANY | |
Abbreviated Income Statement | |
For the Year Ended December 31, 2015 | |
Sales | $45,000,000 |
Less: Fixed Costs | 12,900,000 |
Less: Variable Costs (58% of sales) | 26,100,000 |
Operating income (EBIT) | $ 6,000,000 |
Less: Interest | 1,275,000 |
Earnings before taxes (EBT) | $ 4,725,000 |
Less: Taxes (34%) | 1,606,500 |
Earnings after taxes (EAT) | $ 3,118,500 |
Shares | 2,000,000 |
Earnings per share | $ 1.56 |
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