Cumberland Industries: Income Statement (Thousands of dollars Sales Operating co
ID: 2814821 • Letter: C
Question
Cumberland Industries: Income Statement (Thousands of dollars Sales Operating costs excluding depreciation 2015 550000$ 440000$ 110000$ 7000$ 103000$ 8000S 95000$ 38000$ 57000$ EBITDA Depreciation (Cumberland has no amortization charges) Interest expense Taxes (40% EBIT EBT Net income Common dividends Addition to retained earnings 14250S 42750S 2.b Cumberland Industries' partial balance sheets are shown below. Cumberland issued S10,000,000 of new common stock in the most recent year. Using this information and the results from part a, fill in the missing values for common stock, retained earnings, total common equity, and total liabilities and equity Cumberland Industries December 31 Balance Sheets in thousands of dollars 2015 2014 Assets Cash and cash equivalents Short-term investments Accounts Receivable Inventories $91,450 27,300 108,470 38,450 $265,670 70,000 $74,625 15,100 85,527 34,982 $210,234 42436 Total current assets Net fixed assets Total assets Liabilities and equi Accounts payable Accruals Notes payable $30,761 30,405 12,717 $73,883 80,263 154,146 $23,109 22,656 14,217 $59,982 63,914 $123,896 $90,000 38,774 128,774 Total current liabilities Long-term debt Total liabilities Common stock Retained earnings Total common equ Total liabilities and equityExplanation / Answer
1. Common Stock Balance in 2015 = Common STock Balance in 2014 + New Issued Capital
Common Stock Balance in 2015 = $90000 + $10000
Common Stock Balance in 2015 = $100000 thousand dollars
2. Retained Earnings Balance in 2015 = Retained Earnings Balance in 2014 + Addition to Retaineed Earnings
Retained Earnings Balance in 2015 = $38774 + $42750
Retained Earnings Balance in 2015 = $81524 thousand dollars
3. Total Common Equity = Common Stock + Retained Earnings
Total Common Equity = $100000 + $81524
Total Common Equity = $181524 Thousand Dollars
4. Total Liabilities and Equity = Total Liabilities + Total Common Equity
Total Liabilities and Equity = $154146 + $181524
Total Liabilities and Equity = $335670
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