math

posted by pooja

Given is the Income Statement for the year ended December 31, 2015, Statement of Retained Earnings for the year ended December 31, 2015 and Comparative Balance Sheets for 2014 and 2015 of Maris Corporation:
  
Maris Corporation
Income Statement
Year Ended December 31, 2015
  Sales
$3,300,000  
  Cost of goods sold
1,950,000  
  

     Gross profits
1,350,000  
  Selling and administrative expense
650,000  
  Amortization expense
230,000  
  

     Operating income
470,000  
  Interest expense
80,000  
  

     Earnings before taxes
390,000  
  Taxes
140,000  
  

     Earnings after taxes
250,000  
 


  Preferred stock dividends
10,000  
  

  Earnings available to common shareholders
$240,000  
 


  Shares outstanding
150,000  
  Earnings per share
$1.60  

  
 
Statement of Retained Earnings
For the Year Ended December 31, 2015
  Retained earnings, balance, January 1, 2015
$800,000  
     Add: Earnings available to common shareholders, 2015
240,000  
     Deduct: Cash dividends declared and paid in 2015
140,000  
 

  Retained earnings, balance, December 31, 2015
$900,000  
 



   
 
Comparative Balance Sheets
For 2014 and 2015
 
December 31, 2015
December 31, 2014
  Assets
 
 
 
 
  Current assets:
 
 
 
 
     Cash
 
$120,000  
 
$100,000  
     Accounts receivable (net)
 
510,000  
 
500,000  
     Inventory
 
640,000  
 
610,000  
     Prepaid expenses
 
30,000  
 
60,000  
  
 

 

       Total current assets
 
 1,300,000  
 
1,270,000  
     Investments (long-term securities)
 
80,000  
 
90,000  
     Plant and equipment
2,600,000  
 
2,000,000  
 
     Less: Accumulated amortization
1,230,000  
 
1,000,000  
 
  

 

 
     Net plant and equipment
 
1,370,000  
 
1,000,000  
  
 

 

  Total assets
 
$2,750,000  
 
$2,360,000  
  
 


 


  Liabilities and Shareholders’ Equity
 
 
 
 
  Current liabilities:
 
 
 
 
     Accounts payable
 
$550,000  
 
$300,000  
     Notes payable
 
500,000  
 
500,000  
     Accrued expenses
 
50,000  
 
70,000  
  
 

 

       Total current liabilities
 
1,100,000  
 
870,000  
  Long-term liabilities:
 
 
 
 
     Bonds payable, 2021
 
160,000  
 
100,000  
  
 

 

       Total liabilities
 
1,260,000  
 
970,000  
  Shareholders’ equity:
 
 
 
 
     Preferred stock
 
90,000  
 
90,000  
     Common stock
 
500,000  
 
500,000  
     Retained earnings
 
900,000  
 
800,000  
  
 

 

       Total shareholders’ equity
 
1,490,000  
 
1,390,000  
  
 

 

  Total liabilities and shareholders’ equity
 
$2,750,000  
 
$2,360,000  
  
 


 



  
 
Has the buildup in plant and equipment been financed in a satisfactory manner? Briefly discuss

  1. PsyDAG

    We do not do your homework for you. Although it might take more effort to do the work on your own, you will profit more from your effort. We will be happy to evaluate your work though.

Respond to this Question

First Name

Your Answer

Similar Questions

  1. Introduction to Finance: Harvesting the Money Tree

    27. Prepare a statement of cash flows for the Crosby Corporation. Follow the general procedures indicated in Table 2–10 on page 38 . Statement of cash flows (L04) Current Assets Liabilities Cash . . . . . . . . . . . . . . . . . …
  2. Accounting

    Help with Crosby Corporation? Can you please help me. I am completly stuck. Prepare a statement of cash flows for the Crosby Corporation. Follow the general procedures indicated in Table 2–10 on page 38 . Statement of cash flows
  3. Intermediate Accounting

    On January 4, 2002, Wynn, Inc., bought 15% of Parr Corporation’s common stock for $60,000. Wynn appropriately accounts for this investment by the cost method. The following data concerning Parr are available for the years ended December …
  4. Accounting

    In 2014 ABC Company reported net income of $100,000. What would be the effect on retained earnings on ABC Company's balance sheet and on its 2015 income statement if it didn't record a closing entry?
  5. Fin 324

    Income and retained earnings relationships: Assume that retained earnings increased by $375,000 from December 31, 2008 to December 31, 2009, for jarvie Distribution Corporation. During the year, a cash dividend of $135,000 was paid. …
  6. accounting

    Selected year- end financial statements of Cadet Corporation follow. ( All sales were on credit; selected balance sheet amounts at December 31, 2008 (prior year – you will need this to calculate certain averages), were inventory, …
  7. accounting

    Three different companies each purchased a machine on January 1, 2012, for $54,000. Each machine was expected to last five years or 200,000 hours. Salvage value was estimated to be $4000. All three machines were operated for 50,000 …
  8. Finance

    Trying to figure out how to do problems like these. So confused! 1. The receivables turnover for 2009 is 10 times. 2. All sales are on account. 3. The profit margin for 2009 is 14.5%. 4. Return on assets is 22% for 2009. 5. The current …
  9. Accounting

    Aunt Rhea Corporation Income Statement For the Year Ended December 31, 2015 Service Revenue $ 900,000 Operating Expenses 700,000 Net Income before Income Tax $ 200,000 Gain on Investment Sale 10,000 Net income Before Income Taxes $ …
  10. financial accounting

    Zumbrunn Company’s income statement contained the condensed information below. ZUMBRUNN COMPANY Income Statement For the Year Ended December 31, 2015 Service revenue $969,400 Operating expenses, excluding depreciation $624,480 Depreciation …

More Similar Questions