Part a,b and c of problem 2.1

Current liabilities: s_ Working capital: s_ - 2.1 Consider the balance-sheet entries for war Eagle Corporation in Table P2.1 (a) Compute the firm's Shareholders' equity: s_ - Current assets: $-- Problems 47 TABLE P2.1 Balance Sheet Statement as of December 31, 2015 Assets Cash Marketable securities Accounts receivable $ 150, 200,000 150,000 Prepaid taxes and izsurance Masufacturing plant af cost Less accurnulated depresciation Net fixed assets 30,000 s 600,000 100,000 300,000 20,000 Liabilities and Shareholders' Equity Notes payable Accounts payable Income taxes payable Long-tern mortgage bonds Preferred stock, 6%, $100 par value (1,000 shares) Common stock, $15 par value (10,000 shares) Capital surplus 50,000 100,000 400,000 100,000 150,000 150,000 . (b) If the firm had a net income of $500,000 after (d) Compute the net cash flow from the project dur- taxes, what are the earnings per share? ing the first year Financial Ratio Analysis (c) When the firm issued its common stock, what was the market price of the stock per share