use the following information about XYZ Plumbing $($FY$=12/1),$ a public company with the most recent closing stock price of $$3\mathrm{.}50($used for diluted shares calculations$),$ to answer the folling three problems price of $$3\mathrm{.}50($used for Diluted Shares calculations$),$ to answer the follow:

XYZ Plumbing $-$ Balance Sheet

$2021202220212022$

LIABILITIES

Cash $2,000,0004,672,350$ Accounts Payable $2,300,0002,000,000$

A$/$R $1,000,0001,500,000$ Notes Payable $1,500,0001,500,000$

Inventory $2,000,0002,300,000$ Current portion of LTD $1,000,0001,000,000$

Pre$-$paid expenses $500,000600,000$ Accrued Liabilities $700,0001,520,000$

Total Current Assets $5,500,0009,072,350$ Total Current Liabilities $5,500,0006,020,000$

Building and Improvements $15,000,00015,000,000$ Long$-$Term Debt $9,000,00010,000,000$

Equipment $5,000,0005,000,000$

$20,000,00020,000,000$ Stockholder's Equity

Common Stock at Par $100,000100,000$

Depreciation $500,0001,000,000$ Paid in Capital $9,900,0009,900,000$

Net PP&E $19,500,00019,000,000$ Retained Earnings $500,0002,052,350$

Total Stockholder's Equity $10,500,00012,052,350$

Total Assets $25,000,00028,072,350$ Total Liabilities $+$ Equity $25,000,00028,072,350$

$-$

$66,724$

XYZ Plumbing $-$ Income Statement

$20212022$

Revenue $$10,000,000100\mathrm{.}0\%$ $$12,000,000$

CGS $4,500,00045\mathrm{.}0\%5,340,000$

Gross Profit $$5,500,00055\mathrm{.}0\%$ $$6,660,000$

SG&A $2,000,00020\mathrm{.}0\%2,280,000$

R&D $1,000,00010\mathrm{.}0\%1,100,000$

Deprec & Amort $500,0005\mathrm{.}0\%500,000$

Total Op$.$ Expense $3,500,00035\mathrm{.}0\%3,880,000$

Operating Profit $$2,000,00020\mathrm{.}0\%$ $$2,780,000$

Interest cost $805,0008\mathrm{.}1\%875,000$

Interest income $60,0000\mathrm{.}6\%60,000$

Pre$-$Tax $$1,255,00012\mathrm{.}6\%$ $$1,965,000$

Tax $(21\%)263,55021\mathrm{.}0\%412,650$

Net Income $$991,4509\mathrm{.}9\%$ $$1,552,350$

EPS $-$ Basic $$0\mathrm{.}10$ $$0\mathrm{.}16$

EPS $-$ Diluted

Average Shares Outstanding $10,000,00010,000,000$

Diluted Shares

Diluted Shares Information

Officers and Directors Options $1,800,0001,800,000$

Exercise Price $ $1\mathrm{.}00$ $ $1\mathrm{.}00$

Publice Warrants $3,000,0003,000,000$

Exercise Price $ $1\mathrm{.}25$ $ $1\mathrm{.}25$

Stock Price used for calculating Diluted Shares $ $4\mathrm{.}00$ $ $4\mathrm{.}00$

Diluted Shares Calculation Table

Basic Shares $10,000,00010,000,000$

O&D warrants

Public

Total $10,000,00010,000,000$

Proceeds

Officers and Directors

Public Shareholders

Total Proceeds

Buyback

Price $ $4\mathrm{.}00$ $ $4\mathrm{.}00$

Total Shares repurchased

Diluted Shares