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See below comparative Balance Sheet and Income Statement for Testco: Comparative Balance Sheet Testco Company 2 0 1 5 2 0 1 4 Assets Current

See below comparative Balance Sheet and Income Statement for Testco:
Comparative Balance Sheet Testco Company
20152014
Assets
Current Assets:
Cash $ 100,000.00 $ 125,000.00
Marketable Securities $ 25,000.00 $ 30,000.00
Accounts Receivable, Net $ 700,000.00 $ 750,000.00
Inventory $ 25,000.00 $ 35,000.00
Prepaid Expenses $ 10,000.00 $ 1,000.00
Total Current Assets $ 860,000.00 $ 941,000.00
Plant and Equipment, Net $2,176,000.00 $1,850,000.00
Intellectual Property $ 50,000.00 $ 40,000.00
Total Assets $3,086,000.00 $2,831,000.00
Liabilities and Shareholder's Equity
Liabilities
Current Liabilities $ 750,000.00 $ 700,000.00
Bonds Payable, 10% $ 500,000.00 $ 500,000.00
Total Liabilities $1,250,000.00 $1,200,000.00
Shareholder's Equity
Preferred Shares, $5 no par, 5000 issued $ 200,000.00 $ 200,000.00
Common Shares, 50000 no par $ 500,000.00 $ 500,000.00
Retained Earnings $1,136,000.00 $ 931,000.00
Total Shareholders' Equity $1,836,000.00 $1,631,000.00
Total Liabilities and Shareholders' Equity $3,086,000.00 $2,831,000.00
Comparative Income Statement Testco Company
Sales $8,000,000.00 $7,500,000.00
Less Cost of Goods Sold $6,500,000.00 $5,800,000.00
Gross Margin $1,500,000.00 $1,700,000.00
Less Operating Expenses $ 900,000.00 $ 860,000.00
Net Operating Income (EBIT) $ 600,000.00 $ 840,000.00
Less Interest Expense $ 50,000.00 $ 50,000.00
Net Income Before Taxes $ 550,000.00 $ 790,000.00
Less Income Taxes (40%) $ 220,000.00 $ 316,000.00
Net Income $ 330,000.00 $ 474,000.00
Dividends Paid:
Preferred Dividends $ 25,000.00 $ 25,000.00
Common Dividends $ 100,000.00 $ 90,000.00
Total Dividends Paid $ 125,000.00 $ 115,000.00
Net Income Retained $ 205,000.00 $ 359,000.00
Retained Earnings, Beginning of Year $ 931,000.00 $ 572,000.00
Retained Earnings, End of Year $1,136,000.00 $ 931,000.00
Note the following extra information:
Assume all sales are on account
Accounts Receivable at the beginning of 2014 was $775000
Inventory at the Beginning of 2014 was $45000
Total Assets at the Beginning of 2014 was$2700000
Preferred Equity at the Beginning of 2014 was $200000
Total Shareholders' Equity at the Beginning of 2014 was $1500000
Market Price per Share for 2015 is $19 and 2014 is $20
The dividends per common share was $2.00 in 2015 and $1.80 in 2014
There has been no changes in the number of shares issued over the last 3 years
From the information for Testco Company what is the Book Value per Share for this year?
Question 29 options:
A)
$28.62
B)
$36.72
C)
$37.72
D)
$32.72

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