20X2 20X1
Current Assets:
Cash and cash equivalents $ 50,000 $ 35,000
Trading securities (at fair value) 75,000 65,000
Accounts receivable 300,000 290,000
Inventory (at lower of cost or market) 290,000 275,000
Total current assets 715,000 665,000
Investments available-for-sale (at fair value) 350,000 300,000
Fixed Assets:
Property, plant, and equipment (at cost) 1,900,000 1,800,000
Less: Accumulated depreciation (380,000) (350,000) 1,520,000 1,450,000
Goodwill 30,000 35,000
Total assets $2,615,000 $2,450,000
Current Liabilities:
Accounts payable $ 150,000 $ 125,000
Notes payable 325,000 375,000
Accrued and other liabilities 220,000 200,000
Total current liabilities 695,000 700,000
Long-term Debt:
Bonds and notes payable 650,000 600,000
Total liabilities 1,345,000 1,300,000
Stockholders' Equity:
Common stock (100,000 shares outstanding) 500,000 500,000
Additional paid-in capital 350,000 350,000
Retained earnings 420,000 300,000
Total equity 1,270,000 1,150,000
Total liabilities and equity $2,615,000 $2,450,000
In addition, assume the following information for Gi Company for the year ended December 31, 20X2
Sales $1,800,000
Cost of goods sold (1,000,000)
Gross profit 800,000
Operating expenses (486,970)
Interest expense (10,000)
Net income before income taxes 303,030
Income taxes (34%) (103,030)
Net income after income taxes $ 200,000
Earnings per share $2
Operating cash flows $255,000
Dividends for the year $0.80 per share
Market price per share