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Problems 1. Using the data presented below: Big Rock Candy Mountain Mining Co. Income Statements For the Years 2015 and 2016 2016 2015 Sales $369,300 $354,000 Cost of Goods 285,400 281,800 Gross Profit 83,900 72,200 Depreciation 26,820 26,360 Selling & Admin. Expense 23,340 21,820 Other Operating Expense 1,080 1,080 Net Operating Income 32,660 22,940 Interest Expense 7,685 7,505 Earnings Before Taxes 24,975 15,435 Taxes 9.990 6,174 Net Income $14,985 $9,261 Notes: Tax Rate 40.00% 40.00% Shares 52,100 52,100 Earnings per Share $0.29 S0.18 Big Rock Candy Mountain Mining Co. Balance Sheet For the Year Ended December 31, 2016 2016 2015 Cash Marketable Securities Accounts Receivable Inventory Total Current Assets Gross Fixed Assets Accumulated Depreciation Net Plant & Equipment Total Assets $14,714 $1,841 $41,090 $46,910 $104,555 S388,000 $78,020 S309,980 $414,535 $10,300 $550 S42.100 $48,490 $101.440 $352,600 $51,200 $301,400 $402,840 Liabilities & Owner's Equity Accounts Payable Accrued Expenses Total Current Liabilities Long-term Debt Total Liabilities Common Stock ($1.00 par) Additional Paid-in-Capital Retained Earnings Total Owner's Equity Total Liab & Owner's Equity $35,200 $2,850 $38,050 $152,700 $190,750 $52,100 S121.500 $50,185 $223,785 S414,535 $32,700 $2,740 $35,440 $158,600 $194,040 $52.100 $121,500 $35,200 $208,800 S402,840 2. Using the data from the previous problem: a. Create a common-size income statement for 2015 and 2016. This statement should be created on a separate worksheet with all formulas linked directly to the income statement. 6. Create a common-size balance sheet for 2015 and 2016. This statement should be created on a separate worksheet with all formulas linked directly to the balance sheet. c. Create a common-size statement of cash flows for 2016 that can be switched between using sales and the 2015 cash balance in the denominator. Problems 1. Using the data presented below: Big Rock Candy Mountain Mining Co. Income Statements For the Years 2015 and 2016 2016 2015 Sales $369,300 $354,000 Cost of Goods 285,400 281,800 Gross Profit 83,900 72,200 Depreciation 26,820 26,360 Selling & Admin. Expense 23,340 21,820 Other Operating Expense 1,080 1,080 Net Operating Income 32,660 22,940 Interest Expense 7,685 7,505 Earnings Before Taxes 24,975 15,435 Taxes 9.990 6,174 Net Income $14,985 $9,261 Notes: Tax Rate 40.00% 40.00% Shares 52,100 52,100 Earnings per Share $0.29 S0.18 Big Rock Candy Mountain Mining Co. Balance Sheet For the Year Ended December 31, 2016 2016 2015 Cash Marketable Securities Accounts Receivable Inventory Total Current Assets Gross Fixed Assets Accumulated Depreciation Net Plant & Equipment Total Assets $14,714 $1,841 $41,090 $46,910 $104,555 S388,000 $78,020 S309,980 $414,535 $10,300 $550 S42.100 $48,490 $101.440 $352,600 $51,200 $301,400 $402,840 Liabilities & Owner's Equity Accounts Payable Accrued Expenses Total Current Liabilities Long-term Debt Total Liabilities Common Stock ($1.00 par) Additional Paid-in-Capital Retained Earnings Total Owner's Equity Total Liab & Owner's Equity $35,200 $2,850 $38,050 $152,700 $190,750 $52,100 S121.500 $50,185 $223,785 S414,535 $32,700 $2,740 $35,440 $158,600 $194,040 $52.100 $121,500 $35,200 $208,800 S402,840 2. Using the data from the previous problem: a. Create a common-size income statement for 2015 and 2016. This statement should be created on a separate worksheet with all formulas linked directly to the income statement. 6. Create a common-size balance sheet for 2015 and 2016. This statement should be created on a separate worksheet with all formulas linked directly to the balance sheet. c. Create a common-size statement of cash flows for 2016 that can be switched between using sales and the 2015 cash balance in the denominator
