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2009 2010 2009 2010 Cash $3300 $2700 Accounts Payable $9600 $12,900 Acts Recvble

ID: 2728015 • Letter: 2

Question

                              2009               2010                                                             2009            2010

Cash                     $3300          $2700                         Accounts Payable     $9600             $12,900

Acts Recvble          8100            9600                          Long-term debt           17,800            23,400

Inventory              13,500         14,800                         Preferred stock            10,000           10,000

                                                                                    Common stock             12,000            14,000

Net Fixed Assets   46,900         47,100                       Retained earnings        22,400           13,900

Total Assets          71,800          74,200                    total Liabilities & Equity    71,800           74,200

Income statement, 2010

Net sales:       $73,500

costs:                 48,600

Depreciation      $6300

EBIT                  18,600

Interest                 1700

Taxable Income 16,900

Taxes                     5800

Net Income         11,100

No. of common shares outstanding = 10,000

Preferred dividends paid = $500

QUESTION: what is the BOOK VALUE per share for 2010?

Explanation / Answer

Total Shareholders Equity for 2010= Preferred stock + Common Stock + Retained Earnings = $10000 + 14000 + 13900 = $37900

Common Sharehlders Equity = Total Shareholders Equity - Preferred stock = $37900 - $10000 = $27900

Total outstanding shares for 2010= 10,000 shares

Book value per share for 2010 = $27900 / 10,000 = $2.79 per share