Question P3-5

Dividends received Auto insurance Home insurance Auto loan payment Mortgage payment Seculty 600 Income tax, Social 750 Clothes and accessories Gas and auto repair Entertainment 2,000 2,100 2,000 3,300 14,000 a. Create a personal income and expense statement for the period ended December 31, 2015. It should be similar to a corporate income statement. b. Did the Adams family have a cash surplus or cash deficit? c. If the result is a surplus, how can the Adams family use that surplus? Calculation of EPS and retained earnings Everdeen Mining, Inc., ended 2015 with a net profit before taxes of $436,000. The company is subject to a 40% tax rate and must pay $64,000 in preferred stock dividends before distributing any earnings on the 170,000 shares of common stock currently outstanding. a. Calculate Everdeen's 2015 earnings per share (EPS). b. If the firm paid common stock dividends of $0.80 per share, how many dollars LP3-5 would go to retained earnings? P3-6 Balance sheet preparation Use the appropriate items from the following list to pre- pare in good form Mellark's Baked Goods balance sheet at December 31, 2015. Value ($000) at Item Accounts payable Accounts receivable December 31,2015 Item Value ($000) at December 31, 2015 S 220 Inventories