Financial Statement and Ratio Analysis

HAINZ COMPANY

Income Statement

For the Year Ended December $31,$

$20222021$

Net sales $$400,000$ $$380,000$

Cost of goods sold $250,000209,000$

Operating expenses $42,00095,000$

Interest expense $18,00017,100$

Income tax expense $27,00017,670$

HAINZ COMPANY

Comparative Balance Sheet

December $31,$

$$

Assets $20222021$

Cash $ $20,000$ $ $40,000$

Short$-$term investments $20,00060,000$

Accounts receivable $($net$)40,00030,000$

Inventory $60,00070,000$

Property, plant and equipment $($net$)260,000300,000$

Total assets $$400,000$ $$500,000$

Liabilities and stockholders' equity

Accounts payable $ $20,000$ $ $30,000$

Short$-$term notes payable $40,00090,000$

Bonds payable $80,000160,000$

Common stock $150,000150,000$

Retained earnings $110,00070,000$

Total liabilities and stockholders' equity $$400,000$ $$500,000$

Additional information:

a$.$ Cash dividends of $$23,000$ were declared and paid in $2022.$

b$.$ Weighted$-$average number of shares of common stock outstanding during $2022$ was $30,000$ shares.

c$.$ Market value of common stock on December $31,2022,$ was $$21$ per share.

Instructions

$1.$ Prepare an Income Statement that present the gross profit, operating profit, net profit, and earnings per share $($EPS$).$