In: Accounting
Please use financial statement information for Fin 602 Corp below for question 1) to 6).
Income statement (million dollars)
2019 |
2018 |
|
Sales |
2400 |
1000 |
Operating costs excluding depreciation |
2000 |
850 |
Depreciation |
270 |
25 |
Earnings before interest and taxes |
130 |
125 |
Less interest |
110 |
20.2 |
Earnings before tax |
20 |
104.8 |
Tax (21%) |
4.2 |
22 |
Net Income available to common stockholders |
15.8 |
82.8 |
Common dividend |
4.0 |
4.4 |
Balance sheet (million dollars)
2019 |
2018 |
|
Cash and equivalents |
12 |
10 |
Short term investments |
23 |
20 |
Account receivable |
350 |
150 |
Inventories |
300 |
200 |
Total current assets |
685 |
380 |
Net plant and equipment |
2173.5 |
250 |
Total assets |
2858.5 |
630 |
Accounts payable |
108 |
90 |
Notes payable |
90 |
71.5 |
Accruals |
72 |
60 |
Total current liabilities |
270 |
221.5 |
Long term debts |
2330 |
150 |
Total liabilities |
2600 |
371.5 |
Common stock (50 million shares) |
50 |
50 |
Retained earnings |
208.5 |
208.5 |
Common equity |
258.5 |
258.5 |
Total liabilities and equity |
2858.5 |
630 |