Use the following financial statements for Lake of Egypt Marina, Inc.
LAKE OF EGYPT MARINA, INC
Balance Sheet as of December 31, 2012 and 2011
(in millions of dollars)
2012 2011 2012 2011
Assets Liabilities and Equity
Current assets: Current liabilities:
Cash and marketable securities $ 45 $ 36 Accrued wages and taxes $ 40 $ 20
Accounts receivable 40 32 Accounts payable 35 24
Inventory 195 148 Notes payable 30 32
Total $ 280 $ 216 Total $ 105 $ 76
Fixed assets: Long term debt: $ 130 $ 200
Gross plant and equipment $ 255 $ 200 Stockholders’ equity:
Less: Depreciation 60 40 Preferred stock (4 million shares) $ 4 $ 4
Common stock and paid in surplus
(16 million shares) 16 16
Net plant and equipment $ 195 $ 160 Retained earnings 245 104
Other long term assets 25 24
Total $ 220 $ 184 Total $ 265 $ 124
Total assets $ 500 $ 400 Total liabilities and equity $ 500 $ 400
LAKE OF EGYPT MARINA, INC.
Income Statement for Years Ending December 31, 2012 and 2011
(in millions of dollars)
2012 2011
Net sales (all credit) $ 500 $ 300
Less: Cost of goods sold 200 105
Gross profits $ 300 $ 195
Less: Depreciation 20 12
Other operating expenses 25 18
Earnings before interest and taxes (EBIT) $ 255 $ 165
Less: Interest 25 15
Earnings before taxes (EBT) $ 230 $ 150
Less: Taxes 69 45
Net income $ 161 $ 105
Less: Preferred stock dividends $ 4 $ 4
Net income available to common stockholders $ 157 $ 101
Less: Common stock dividends 16 16
Addition to retained earnings $ 141 $ 85
Per (common) share data:
Earnings per share (EPS) $ 9.813 $ 6.313
Dividends per share (DPS) $ 1.000 $ 1.000
Book value per share (BVPS) $ 16.313 $ 7.500
Market value (price) per share (MVPS) $ 15.700 $ 10.500
Spread the balance sheets of Lake of Egypt Marina, Inc., for 2012 and 2011. (Be sure to list the assets and liabilities in order of their liquidity. Input all amounts as positive values. Round your answers to 2 decimal places.)
LAKE OF EGYPT MARINA, INC
Balance Sheet as of December 31, 2012 and 2011
(in millions of dollars)
2012 2011
Assets
Current Assets
% %
Total
Fixed assets:
Total
Total assets % %
Liabilities and Equity
Current Liabilities
% %
Total
Long-term debt:
Stockholders’ Equity
Total
Total Liabilities and Equity % %
Spread the income statements of Lake of Egypt Marina, Inc., for 2012 and 2011. (Input all amounts as positive values. Round your answers to 2 decimal places.)
LAKE OF EGYPT MARINA, INC.
Income Statement for Years Ending December 31, 2012 and 2011
(in millions of dollars)
2012 2011
% %
% %
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To spread the balance sheets and income statements of Lake of Egypt Marina, Inc. for 2012 and 2011, you can follow these steps:
1. Balance Sheet - Assets:
- Begin by listing the different categories of assets in order of their liquidity.
- The current assets include:
- Cash and marketable securities: $45 million (2012) and $36 million (2011)
- Accounts receivable: $40 million (2012) and $32 million (2011)
- Inventory: $195 million (2012) and $148 million (2011)
- Calculate the total current assets by summing up the values for each category:
- Total current assets: $280 million (2012) and $216 million (2011)
- The fixed assets include:
- Gross plant and equipment: $255 million (2012) and $200 million (2011)
- Less: Depreciation: $60 million (2012) and $40 million (2011)
- Calculate the net plant and equipment by subtracting depreciation from gross plant and equipment:
- Net plant and equipment: $195 million (2012) and $160 million (2011)
- The other long-term assets are $25 million (2012) and $24 million (2011).
- Calculate the total assets by summing up the total current assets, net plant and equipment, and other long-term assets:
- Total assets: $500 million (2012) and $400 million (2011)
2. Balance Sheet - Liabilities and Equity:
- Begin by listing the different categories of liabilities and equity.
- The current liabilities include:
- Accrued wages and taxes: $40 million (2012) and $20 million (2011)
- Accounts payable: $35 million (2012) and $24 million (2011)
- Notes payable: $30 million (2012) and $32 million (2011)
- Calculate the total current liabilities by summing up the values for each category:
- Total current liabilities: $105 million (2012) and $76 million (2011)
- The long-term debt is $130 million (2012) and $200 million (2011).
- The stockholders' equity includes:
- Preferred stock: $4 million (2012) and $4 million (2011)
- Common stock and paid-in surplus: $16 million (2012) and $16 million (2011)
- Retained earnings: $245 million (2012) and $104 million (2011)
- Calculate the total stockholders' equity by summing up the values for preferred stock, common stock and paid-in surplus, and retained earnings:
- Total stockholders' equity: $265 million (2012) and $124 million (2011)
- Calculate the total liabilities and equity by summing up the total current liabilities, long-term debt, and total stockholders' equity:
- Total liabilities and equity: $500 million (2012) and $400 million (2011)
3. Income Statement:
- Begin by listing the different categories of the income statement.
- Net sales: $500 million (2012) and $300 million (2011)
- Cost of goods sold: $200 million (2012) and $105 million (2011)
- Calculate the gross profits by subtracting the cost of goods sold from net sales:
- Gross profits: $300 million (2012) and $195 million (2011)
- Depreciation: $20 million (2012) and $12 million (2011)
- Other operating expenses: $25 million (2012) and $18 million (2011)
- Calculate the earnings before interest and taxes (EBIT) by subtracting the total of depreciation and other operating expenses from gross profits:
- Earnings before interest and taxes (EBIT): $255 million (2012) and $165 million (2011)
- Interest: $25 million (2012) and $15 million (2011)
- Calculate the earnings before taxes (EBT) by subtracting the interest from EBIT:
- Earnings before taxes (EBT): $230 million (2012) and $150 million (2011)
- Taxes: $69 million (2012) and $45 million (2011)
- Calculate the net income by subtracting the taxes from EBT:
- Net income: $161 million (2012) and $105 million (2011)
- Preferred stock dividends: $4 million (2012) and $4 million (2011)
- Calculate the net income available to common stockholders by subtracting the preferred stock dividends from net income:
- Net income available to common stockholders: $157 million (2012) and $101 million (2011)
- Common stock dividends: $16 million (2012) and $16 million (2011)
- Calculate the addition to retained earnings by subtracting the common stock dividends from net income available to common stockholders:
- Addition to retained earnings: $141 million (2012) and $85 million (2011)