Question
In: Accounting
Jet Company's summarized financial statement information for the beginning of the year is as follows: Marketable...
Jet Company's summarized financial statement information for the beginning of the year is as follows:
Marketable Securities $50,000
All Other Assets $150,000
Total Liabilities $80,000
Total Stockholders' Equity $120,000
During the year, Jet had Revenue of $77,000, Expenses of $46,000 and paid cash dividends of $7,000. Marketable Securities increased in value by 16% , liabilities remained unchanged for the year and Jet had 15,000 shares outstanding all year. Calculate the information that Jet would report on its financial statements at the end of the year.
Net income =
Total assets =
Total liabilities =
Total equity =
Eps =
Solutions
Expert Solution
Answers:
Net income = $31,000
Total assets = $208,000
Total liabilities = $80,000
Total equity = $120,000
Eps = $2.07 (approx.)
Explanations:
>
Net Income = Revenue - Expenses
= $77,000 - $46,000
= $31,000
>
Total Assets = Marketable Securities + Other Assets
= ($50,000 16%) + $150,000
= $58,000 + 150,000
= $208,000
>
Total Liabilities = 80,000 (given)
>
Total Equity = $120,000
>
EPS = Net Income ÷ Average Outstanding Shares
= $31,000 ÷ 15,000 shares
= $2.066667
= $2.07 (approx.)
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