Sankey, Inc., has current assets of $7,200, net fixed assets of $25,400, current

Question

Sankey, Inc., has current assets of $7,200, net fixed assets of $25,400, current liabilities of $6,350, and long-term debt of $15,100. (Do not round intermediate calculations.)

What is the value of the shareholders' equity account for this firm?

Shareholders' equity $____

How much is net working capital?

Net working capital $____

Shelton, Inc., has sales of $393,000, costs of $181,000, depreciation expense of $46,000, interest expense of $27,000, and a tax rate of 30 percent. (Do not round intermediate calculations.

What is the net income for the firm?

Net income

$____   

Suppose the company paid out $36,000 in cash dividends. What is the addition to retained earnings?

Addition to retained earnings

$____   

Shelton, Inc., has sales of $393,000, costs of $181,000, depreciation expense of $46,000, interest expense of $27,000, and a tax rate of 30 percent. (Do not round intermediate calculations.

Explanation / Answer

We know Total Assets = Equity + Total Liabilities Total Assets Net Fixed Assets          25,400 Current Assets            7,200          32,600 Less Total Liabilities Current Liabilities            6,350 Long Term Debt          15,100          21,450 Equity          11,150 Net Working Capital Current Assets            7,200 Less Current Liabilities            6,350                850 Sales          393,000 Less Costs          181,000 Profits before depreciation interest and tax (PBDIT)          212,000 Less Depreciation            46,000 Profits before interest and tax (PBIT)          166,000 Less Interest            27,000 Profits before tax (PBT)          139,000 Less Tax            41,700 Profit after tax (PAT)/ Net Income            97,300 Less Cash Dividend            36,000 Retained Earnings            61,300

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