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Posts: 129
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9 months ago
Symons Corporation has provided the following financial data: | Balance Sheet | | December 31, Year 2 and Year 1 | | Year 2 | Year 1 |
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| Assets | | |
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| Current assets: | | |
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| Cash | $ 225,000 | $ 160,000 |
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| Accounts receivable, net | 191,000 | 180,000 |
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| Inventory | 96,000 | 110,000 |
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| Prepaid expenses | 91,000 | 80,000 |
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| Total current assets | 603,000 | 530,000 |
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| Plant and equipment, net | 810,000 | 840,000 |
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| Total assets | $ 1,413,000 | $ 1,370,000 |
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| Liabilities and Stockholders' Equity | | |
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| Current liabilities: | | |
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| Accounts payable | $ 226,000 | $ 190,000 |
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| Accrued liabilities | 66,000 | 70,000 |
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| Notes payable, short term | 54,000 | 50,000 |
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| Total current liabilities | 346,000 | 310,000 |
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| Bonds payable | 170,000 | 170,000 |
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| Total liabilities | 516,000 | 480,000 |
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| Stockholders’ equity: | | |
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| Common stock, $5 par value | 250,000 | 250,000 |
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| Additional paid-in capital | 70,000 | 70,000 |
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| Retained earnings | 577,000 | 570,000 |
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| Total stockholders’ equity | 897,000 | 890,000 |
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| Total liabilities & stockholders’ equity | $ 1,413,000 | $ 1,370,000 |
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| Income Statement | | For the Year Ended December 31, Year 2 | | Sales (all on account) | $ 1,260,000 |
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| Cost of goods sold | 760,000 |
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| Gross margin | 500,000 |
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| Operating expenses | 473,429 |
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| Net operating income | 26,571 |
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| Interest expense | 13,000 |
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| Net income before taxes | 13,571 |
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| Income taxes (30%) | 4,071 |
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| Net income | $ 9,500 |
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Dividends on common stock during Year 2 totaled $2,500. The market price of common stock at the end of Year 2 was $2.01 per share. The company’s book value per share at the end of Year 2 is closest to: ▸ $17.94 per share ▸ $28.26 per share ▸ $0.19 per share ▸ $11.54 per share
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