Question

Use the following financial statements for Lake of Egypt Marina, Inc. LAKE OF EGYPT MARINA, INC Balance Sheet as of December 31, 2015 and 2014 (in millions of dollars) 2015 2014 2015 2014 Assets Liabilities and Equity Current assets: Current liabilities: Cash and marketable securities $ 72 $ 48 Accrued wages and taxes $ 56 $ 54 Accounts receivable 80 60 Accounts payable 80 66 Inventory 294 186 Notes payable 48 54 Total $ 446 $ 294 Total $ 184 $ 174 Fixed assets: Long term debt: $ 376 $ 240 Gross plant and equipment $ 400 $ 336 Stockholders’ equity: Less: Depreciation 86 66 Preferred stock (6 million shares) $ 6 $ 6 Common stock and paid in surplus (24 million shares) 24 24 Net plant and equipment $ 314 $ 270 Retained earnings 210 156 Other long term assets 40 36 Total $ 354 $ 306 Total $ 240 $ 186 Total assets $ 800 $ 600 Total liabilities and equity $ 800 $ 600 LAKE OF EGYPT MARINA, INC. Income Statement for Years Ending December 31, 2015 and 2014 (in millions of dollars) 2015 2014 Net sales (all credit) $ 400 $ 250 Less: Cost of goods sold 200 120 Gross profits $ 200 $ 130 Less: Other operating expenses 28 15 Earnings before interest, taxes, depreciation, and amortization (EBITDA) 172 115 Less: Depreciation 20 10 Earnings before interest and taxes (EBIT) $ 152 $ 105 Less: Interest 32 15 Earnings before taxes (EBT) $ 120 $ 90 Less: Taxes 36 27 Net income $ 84 $ 63 Less: Preferred stock dividends $ 6 $ 6 Net income available to common stockholders $ 78 $ 57 Less: Common stock dividends 24 24 Addition to retained earnings $ 54 $ 33 Per (common) share data: Earnings per share (EPS) $ 3.250 $ 2.375 Dividends per share (DPS) $ 1.000 $ 1.000 Book value per share (BVPS) $ 9.750 $ 7.500 Market value (price) per share (MVPS) $ 15.000 $ 8.900 Spread the balance sheets of Lake of Egypt Marina, Inc., for 2015 and 2014. (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, 2015 and 2014 (in millions of dollars) 2015 2014 2015 2014 Assets Liabilities and Equity Current Assets Current Liabilities % % % % Total Total Fixed assets: Long-term debt: Stockholders’ Equity Total Total Total assets % % Total Liabilities and Equity % % Spread the income statements of Lake of Egypt Marina, Inc., for 2015 and 2014. (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, 2015 and 2014 (in millions of dollars) 2015 2014 % % % %

Answer 1

a)
LAKE OF EGYPT MARINA, INC
Balance Sheet as of December 31, 2015 and 2014
(in thousands of dollars)
	2015	Percent	2014	Percent		2015	Percent	2014	Percent
Assets					Liabilities and Equity
Current assets:					Current liabilities:
Cash and marketable securities	$72.00	9.00%	$48.00	8.00%	Accrued wages and taxes	$56.00	7.00%	$54.00	9.00%
Accounts receivable	$80.00	10.00%	$60.00	10.00%	Accounts payable	$80.00	10.00%	$66.00	11.00%
Inventory	$294.00	36.75%	$186.00	31.00%	Notes payable	$48.00	6.00%	$54.00	9.00%
Total	$446.00	55.75%	$294.00	49.00%	Total	$184.00	23.00%	$174.00	29.00%
Fixed assets:					Long-term debt:	$376.00	47.00%	$240.00	40.00%
Gross plant and equipment	$400.00	50.00%	$336.00	56.00%	Stockholders’ equity:
Less: Depreciation	$86.00	10.75%	$66.00	11.00%	Preferred stock (6 thousand shares)	$6.00	0.75%	$6.00	1.00%
Net plant and equipment	$314.00	39.25%	$270.00	45.00%	Common stock and paid-in surplus(24 million shares)	$24.00	3.00%	$24.00	4.00%
Other long-term assets	$40.00	5.00%	$36.00	6.00%	Retained earnings	$210.00	26.25%	$156.00	26.00%
Total	$354.00	44.25%	$306.00	51.00%	Total	$240.00	30.00%	$186.00	31.00%
Total assets	$800.00	100.00%	$600.00	100.00%	Total liabilities and equity	$800.00	100.00%	$600.00	100.00%
b)
LAKE OF EGYPT MARINA, INC
Income Statement for Years Ending December 31, 2015 and 2014
(in thousands of dollars)
	2015	Percent	2014	Percent
Net sales	$400.00	100.00%	$250.00	100.00%
Less: Cost of goods sold	$200.00	50.00%	$120.00	48.00%
Gross profits	$200.00	50.00%	$130.00	52.00%
Less: Other operating expenses	$28.00	7.00%	$15.00	6.00%
Earnings before interest, taxes, depreciation, and amortization (EBITDA)	$172.00	43.00%	$115.00	46.00%
Less: Depreciation	$20.00	5.00%	$10.00	4.00%
Earnings before interest and taxes (EBIT)	$152.00	38.00%	$105.00	42.00%
Less: Interest	$32.00	8.00%	$15.00	6.00%
Earnings before taxes (EBT)	$120.00	30.00%	$90.00	36.00%
Less: Taxes	$36.00	9.00%	$27.00	10.80%
Net income	$84.00	21.00%	$63.00	25.20%
Less: Preferred stock dividends	$6.00	1.50%	$6.00	2.40%
Net income available to common stockholders	$78.00	19.50%	$57.00	22.80%
Less: Common stock dividends	$24.00	6.00%	$24.00	9.60%
Addition to retained earnings	$54.00	13.50%	$33.00	13.20%