Luther Corporation Consolidated Income Statement Year ended December 31 (in $ mi
ID: 2384027 • Letter: L
Question
Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $ millions)
2009
2008
Total sales
610.1
578.3
Cost of sales
(500.2)
(481.9)
Gross profit
109.9
96.4
Selling, general, and
administrative expenses
(40.5)
(39.0)
Research and development
(24.6)
(22.8)
Depreciation and amortization
(3.6)
(3.3)
Operating income
41.2
31.3
Other income
---
---
Earnings before interest and taxes (EBIT)
41.2
31.3
Interest income (expense)
(25.1)
(15.8)
Pre-tax income
16.1
15.5
Taxes
(5.5)
(5.3)
Net income
10.6
10.2
Price per share
$16
$15
Shares outstanding (millions)
10.2
8.0
Stock options outstanding (millions)
0.3
0.2
Stockholders' Equity
126.6
63.6
Total Liabilities and Stockholders' Equity
533.1
386.7
Luther Corporation
Consolidated Balance Sheet
December 31, 2009 and 2008 (in $ millions)
Assets
2009
2008
Liabilities and Stockholders' Equity
2009
2008
Current Assets
Current Liabilities
Cash
63.6
58.5
Accounts payable
87.6
73.5
Accounts receivable
55.5
39.6
Notes payable /
short-term debt
10.5
9.6
Inventories
45.9
42.9
Current maturities of long-term debt
39.9
36.9
Other current assets
6.0
3.0
Other current liabilities
6.0
12.0
Total current assets
171.0
144.0
Total current liabilities
144.0
132.0
Long-Term Assets
Long-Term Liabilities
Land
66.6
62.1
Long-term debt
239.7
168.9
Buildings
109.5
91.5
Capital lease obligations
---
---
Equipment
119.1
99.6
Total Debt
239.7
168.9
Less accumulated
depreciation
(56.1)
(52.5)
Deferred taxes
22.8
22.2
Net property, plant, and equipment
239.1
200.7
Other long-term liabilities
---
---
Goodwill
60.0
--
Total long-term liabilities
262.5
191.1
Other long-term assets
63.0
42.0
Total liabilities
406.5
323.1
Total long-term assets
362.1
242.7
Stockholders' Equity
126.6
63.6
Total Assets
533.1
386.7
Total liabilities and Stockholders' Equity
533.1
386.7
Assuming that Luther has no convertible bonds outstanding, then for the year ending December 31, 2009 Luther's diluted earnings per share are closest to:
a. $1.01
b. $1.04
c. $1.28
d. $1.33
Consider the following timeline detailing a stream of cash flows:
If the current market rate of interest is 8%, then the present value of this stream of cash flows is closest to:
a. $21,211
b. $24,074
c. $22,871
d. $26,000
Luther Corporation
Consolidated Income Statement
Year ended December 31 (in $ millions)
2009
2008
Total sales
610.1
578.3
Cost of sales
(500.2)
(481.9)
Gross profit
109.9
96.4
Selling, general, and
administrative expenses
(40.5)
(39.0)
Research and development
(24.6)
(22.8)
Depreciation and amortization
(3.6)
(3.3)
Operating income
41.2
31.3
Other income
---
---
Earnings before interest and taxes (EBIT)
41.2
31.3
Interest income (expense)
(25.1)
(15.8)
Pre-tax income
16.1
15.5
Taxes
(5.5)
(5.3)
Net income
10.6
10.2
Price per share
$16
$15
Shares outstanding (millions)
10.2
8.0
Stock options outstanding (millions)
0.3
0.2
Stockholders' Equity
126.6
63.6
Total Liabilities and Stockholders' Equity
533.1
386.7
Date 2 3 4 0 $5000$6000 $7000 $8000 Cash flowExplanation / Answer
EPS= Net Income/Shares Outstanding
= $10.6/10.2
= $1.04
The question does not speak of conversion of debt into shares so it will be the diluted EPS.
The other questioms says following timeline there is no detail in the question so pleasse provide
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