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BERNARD COMPANY Balance Sheets As of December 31 2012 2011 Assets Current assets

ID: 2376943 • Letter: B

Question


BERNARD COMPANY

Balance Sheets

As of December 31

                                      2012                           2011

  Assets

  Current assets

     Cash $                        16,600 $ 12,600

     Marketable securities 20,700 7,500

     Accounts receivable (net) 55,000 46,200

     Inventories 135,700 144,100

     Prepaid items 26,600 10,700

         Total current assets 254,600 221,100

     Investments 28,000 21,200

     Plant (net) 270,500 255,300

     Land 30,200 25,800

  Total assets $ 583,300 $ 523,400

  Liabilities and Stockholders

Explanation / Answer

Earnings per share = (Net Income-Pred Div)/Avge common share outstanding


2011 : EPS = (36600 -1900)/9600 = $3.61


2012 : EPS = (36000 -1900)/9600 = $3.55


Book value per share of common stock

= (Stakeholder Equity-Pref Right)/Avge common sher aoutstanding


2012: BV per share = (306700-72000)/9600 = $24.45


2011: BV per share = (280700-72000)/9600 = $21.74


(market price per share: 2011, $13.10; 2012, $12.35)

Price-earnings ratio = Mkt price/EPS


2012: PE Ratio = 12.35/3.55 = 3.48


2011: PE Raio = 13.10/3.61 = 3.63


Dividend yield on common stock = Div per share/Mkt price

2012: DIv Yield = (4400/9600)/12.35 = 3.71%


2011:DIv Yield = (4400/9600)/13.10 = 3.50%