Maverick Company?s 2016 Income Statement:

Sales Revenue $915,000

COGS (444,000)

Selling and Admin. Expenses (289,000)

Interest Expense (150,000)

Net Income $ 32,000

Maverick Company?s Dec 31, 2016 Balance Sheet:

ASSETS LIABILITIES and OWNERS EQUITY

Cash $ 10,000 Accounts Payable $19,000

A/R 42,000 Advance from Customer 10,000

Inventory 85,000 Bonds Payable 61,000

Other Assets 28,000

PP & Equipment 150,000 Common Stock 75,000

Acc. Depreciation (65,000) $7.25 Preferred Stock 80,000

============================== Treasury Stock (15,000)

TOTAL ASSETS $250,000 Retained Earnings 20,000

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TOTAL LIABILITIES and OE $ 250,000

Additional Information:

There are 50,000 shares of Common Stock outstanding on December 31, 2016;

There are 12,000 shares of $7.25 Preferred Stock outstanding on December 31, 2016;

The company held 18,000 shares of Treasury Stock on December 31, 2016;

[20 points] What was Maverick?s 2016 EPS (Earnings Per Share) ? Show your work.

[20 points] In 2017 Maverick decided to buy back (repurchase) 10,000 shares of their stock for $22.00 per share. There were no other stock related transactions in 2017. Assume Maverick?s reported 2017 Net Income was the same as in 2016. What was Mavericks EPS in 2017 ?

Problem 5. [40 points]-EPS Maverick Company's 2016 Income Statement: Sales Revenue $915,000 COGS (444,000) Selling and Admin. Expenses (289,000) Interest Expense (150,000) Net Income $ 32,000 Maverick Company's Dec 31, 2016 Balance Sheet: ASSETS Cash A/R Inventory Other Assets $ 10,000 42,000 85,000 28,000 PP & Equipment 150,000 Acc. Depreciation (65,000) ============================== TOTAL ASSETS $250,000 LIABILITIES and OWNERS EQUITY Accounts Payable $19,000 Advance from Customer 10,000 Bonds Payable 61,000 Common Stock 75,000 $7.25 Preferred Stock 80,000 Treasury Stock (15,000) Retained Earnings 20,000 ==================================== TOTAL LIABILITIES and OE $ 250,000 Additional Information: There are 50,000 shares of Common Stock outstanding on December 31, 2016; There are 12,000 shares of $7.25 Preferred Stock outstanding on December 31, 2016; The company held 18,000 shares of Treasury Stock on December 31, 2016; [20 points] What was Maverick's 2016 EPS (Earnings Per Share) ? Show your work. BUSN 501 - Final Exam Page1 [20 points] In 2017 Maverick decided to buy back (repurchase) 10,000 shares of their stock for $22.00 per share. There were no other stock related transactions in 2017. Assume Maverick's reported 2017 Net Income was the same as in 2016. What was Mavericks EPS in 2017 ? Problem 6. [110 points] - Cash Flow Statement Baffled Incorporated December 31, 2015 and 2016 Balance Sheets are as follows: Cash Accounts Receivable Interest Receivable Inventory Prepaid Insurance TOTAL CURRENT ASSETS 2015 200,000 90,000 300,000 558,000 183,000 $1,331,000 2016 120,000 100,000 183,000 591,000 81,000 $1,075,000 Land 420,000 500,000 Equipment 1,940,000 1,810,000 Accumulated Depreciation (691,000) (705,000) ============================================================ TOTAL ASSETS $ 3,000,000 2,680,000 Accounts Payable Salaries Payable Taxes Payable Advance from Customer TOTAL CURRENT LIABILITIES Loan Payable Bonds Payable Note Payable 444,000 156,000 282,000 226,000 $1,108,000 200,000 195,000 177,000 162,000 $734,000 90,000 324,000 173,000 280,000 264,000 128,000 Common Stock 390,000 500,000 Treasury Stock (33,000) (46,000) $4.25 Preferred Stock 178,000 200,000 Retained Earnings 770,000 620,000 ============================================================ TOTAL LIABILITIES and OE $ 3,000,000 $ 2,680,000 Additional Information: 1. Baffled paid COMMON stock dividends of $ 153,000 on December 31, 2016. 2. Baffled paid the PREFERRED Stock dividends on December 31, 2016 3. As of Dec 31, 2016 Baffled had 70000 shares of common stock outstanding, 12000 shares of $4.25 preferred stock, and 6000 shares of treasury stock. 4. During 2016, Baffled sold equipment originally costing $240,000 for $125,000 cash and recorded a loss of $60,000. They did not sell any land during the year. BUSN 501 - Final Exam Page1 ==> [10 points] What was Baffled's total CASHFLOW for 2016 ? BUSN 501 - Final Exam Page1 [50 points] CFO - What was the company's CASH FLOW FROM OPERATIONS for 2016. YOU MUST SHOW YOUR WORK and NOTE WHERE THE NUMBER COMES FROM. (for example: \"change in A/R\" or, \"increase inventory\