Financial Statement Analysis I> On December 31, 20XX, Ms. Lorna Doone, a self-employed financial consultant prepared the following information. She endeavored to determine how well her company is doing: Revenues Salaries (per month) Doone Assistant Secretary $4.000 $2.000 $1.500 Employment Taxes and Benefits Office Supplies Travel Lease Payments (Per month) Depreciation on fixed assets Interest paid Preferred Stock Dividends Common Stock Shares Tax Bracket $180 000 II> $ 17 300 $5 200 $8.500 $ 1350 $ 7800 $ 7500 $ 10 000 1 500 shares issued 30% 1. What is Ms. Doone's tax liability 2. What were the Earnings After Tax (EAT)? 3. If Ms. Doone had preferred stockholders' dividends of $10 000, how much were the earnings available to common stockholders? 4. If Ms. Doone had 1 500 common stock shares outstanding, how much in dividends did each share receive? 5. How much EBIT did Ms. Doone earn? 6. If the price of Doone stock is $72 per share, what is its P/E ratio? 7. What is Doone's interest coverage ratio? 8. How much cash on hand did Ms. Doone realize? (EAT + Depreciation) 9. Do a common size income statement and indicate: a. What % of revenue is tied up in salaries? b. What % of revenue is tied up in employee benefits c. What % of revenue is tied up in interest paid? d. What does the depreciation % tell you about Ms. Doone's business? Shower Power Bath Products had net profits before taxes (EBT) of $218 000. The company is in the 40% tax bracket and must pay $32 000 in preferred stock dividends before distributing any earnings on the 85 000 shares of common stock outstanding. 1. What were Shower's Earnings Per Share (EPS)? 2. If the firm paid dividends of $.80, how much would go to retained earnings? $130 800 $9 250 $35 000 Answers In Random Order: $30 800 $30 800 $1.16 $8 250 10% $68 000 4.67 $19 250 12 50% $27 050 4% 4% $6.16

Financial Statement Analysis Is On December 31, 20xx, Ms. Lorno Doone, a self-employed finchcial consultarit prepered the following information. She endeovored to determine how well her companv is dain. 1. What is Ms. Doone's tax liability 2. What were the Earnings After Tax (EAT)? 3. If Ms. Doone had preferred stockholders' dividends of $10000, how much were the earnings awalable to common stockholders? 4. If Ms. Doone had 1500 common stock shares outstanding, how much in dividends did each share receive? 5. How much EBIT did Ms. Doone eam? 6. If the price of Doone stock is $72 per share, what is its P/E ratio? 7. What is Doone's interest coverage ratio? 8. How much cash on hand did Ms. Doone realize? (EAT + Depreciation) 9. Do a common size income statement and indicate: a. What % of revenue is tied up in salaries? b. What % of revenue is tied up in employee benefits c. What % of revenue is tied up in interest paid? d. What does the depreciation \% tell you about Ms. Doone's business? II Shower Power Bath Products had net profits before taxes (EBT) of $218000. The company is in the 40% tax bracket and must pay $32000 in preferred stock dividends before distributing any earnings on the 85000 shares of common stock outstanding. 1. What were Shower's Eamings Per Share (EPS)? 2. If the firm paid dividends of $.80, how much would go to retained earnings? Financial Statement Analysis Is On December 31, 20xx, Ms. Lorno Doone, a self-employed finchcial consultarit prepered the following information. She endeovored to determine how well her companv is dain. 1. What is Ms. Doone's tax liability 2. What were the Earnings After Tax (EAT)? 3. If Ms. Doone had preferred stockholders' dividends of $10000, how much were the earnings awalable to common stockholders? 4. If Ms. Doone had 1500 common stock shares outstanding, how much in dividends did each share receive? 5. How much EBIT did Ms. Doone eam? 6. If the price of Doone stock is $72 per share, what is its P/E ratio? 7. What is Doone's interest coverage ratio? 8. How much cash on hand did Ms. Doone realize? (EAT + Depreciation) 9. Do a common size income statement and indicate: a. What % of revenue is tied up in salaries? b. What % of revenue is tied up in employee benefits c. What % of revenue is tied up in interest paid? d. What does the depreciation \% tell you about Ms. Doone's business? II Shower Power Bath Products had net profits before taxes (EBT) of $218000. The company is in the 40% tax bracket and must pay $32000 in preferred stock dividends before distributing any earnings on the 85000 shares of common stock outstanding. 1. What were Shower's Eamings Per Share (EPS)? 2. If the firm paid dividends of $.80, how much would go to retained earnings