# perform the 7 calculations 461399

Retained Earnings

2010 2009

R/E @ the beginning 407,000 61,000

Total 802,000 434,000

Deduct Dividends

On preferred stock 3,000 3,000

On common stock 24,000 24,000

Total 27,000 27,000

R/E @ the End 775,000 407,000

Income Statements

2010 2009

GROSS sales 1,502,000 1,403,000

Returns & Allowances 2,000 3,000

NET sales 1,500,000 1,400,000

Cost of Goods sold 480,000 450,000

Gross Profit 1,020,000 950,000

Selling Expenses 300,000 275,000

Total Op. Exp. 500,000 473,000

Income from Ops 520,000 477,000

Other Income 24,000 5,000

544,000 482,000

Interest expense 100,000 70,000

Income Before taxes 444,000 412,000

Income tax expense 49,000 39,000

Net Income 395,000 373,000

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Assets

2010 2009

Current Assets:

Cash 200,000 100,000

Temp Investments 350,000 300,000

A/R 250,000 200,000

Inventories 200,000 100,000

Prepaid Exp. 103,000 23,000

Total current Assets 1,103,000 723,000

Long term Investments 250,000 250,000

PP&E(net) 1,000,000 975,000

Total assets 2,353,000 1,948,000

Liabilities

2010 2009

Current liabilities 278,000 241,000

Long-term Liabilities

Mortgage Note 6% 200,000

Bonds payable 9% 800,000 1,000,000

Total LT liabilities 1,000,000 1,000,000

Total liabilities 1,278,000 1,241,000

Stockholder’s Equity

2010 2009

Preferred \$3 stock, \$50 Par 100,000 100,000

Common Stock \$5 Par 200,000 200,000

Retained Earnings 775,000 407,000

Total Stockholder’s equity 1,075,000 707,000

Total Liabilities & Stockholders equity 2,353,000 1,948,000

*The stock is selling at \$50 a share

1. Working Capital for year end 2010 ____________________

2.Current Ratio for year end 2010____________________

3.Quick ratio for year end 2010__________________

4. A/R turnover for 2010____________________

5. Days to collect average A/R for 2010 _____________

6. Inventory turnover for 2010___________________

7. Days to sell Average inventory for 2010___________________

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