Multiple Choice Question 62

Information for Sheridan Company is given below:

Sheridan Company

Balance Sheet

December 31, 2018

Assets

Equities

Cash$ 291000

Accounts payable$ 638000

Accounts receivable (net)1941000

Income taxes payable

186000

Inventories2441000

Miscellaneous accrued payables223000

Plant and equipment,Bonds payable (8%, due 2020)1800000

net of depreciation1985000

Preferred stock ($100 par, 6%Patents259000

cumulative nonparticipating)757000

Other intangible assets73900

Common stock (no par, 60,000

Total Assets$6990900

shares authorized, issuedand outstanding)1120000

Retained earnings2493900

Treasury stock-1500 sharesof preferred(227000)

Total Equities$6990900

Sheridan Company

Income Statement

Year Ended December 31, 2018

Net sales$9300000

Cost of goods sold6500000

Gross profit2800000

Operating expenses (including bond interest expense)1500000

Income before income taxes1300000

Income tax450000

Net income$ 850000

Additional information:

There are no preferred dividends in arrears, the balances in the Accounts Receivable and Inventory accounts are unchanged from January 1, 2018, and there were no changes in the Bonds Payable, Preferred Stock, or Common Stock accounts during 2018. Assume that preferred dividends for the current year have not been declared.

At December 31, 2018, the book value per share of common stock was

$59.47.

$58.98.

$56.48.

$60.23.