In: Finance
Financing Deficit
Stevens Textile Corporation's 2016 financial statements are shown below:
Balance Sheet as of December 31, 2016 (Thousands of Dollars)
Cash | $ 1,080 | Accounts payable | $ 4,320 | |
Receivables | 6,480 | Accruals | 2,880 | |
Inventories | 9,000 | Line of credit | 0 | |
Total current assets | $16,560 | Notes payable | 2,100 | |
Net fixed assets | 12,600 | Total current liabilities | $ 9,300 | |
Mortgage bonds | 3,500 | |||
Common stock | 3,500 | |||
Retained earnings | 12,860 | |||
Total assets | $29,160 | Total liabilities and equity | $29,160 |
Income Statement for January 1 - December 31, 2016 (Thousands of Dollars)
Sales | $36,000 |
Operating costs | 32,440 |
Earnings before interest and taxes | $ 3,560 |
Interest | 460 |
Pre-tax earnings | $ 3,100 |
Taxes (40%) | 1,240 |
Net income | $ 1,860 |
Dividends (45%) | $ 837 |
Addition to retained earnings | $ 1,023 |
Total assets | $ |
AFN | $ |