Question

Question 1

The following are the financial statements of Rigolo Inc.

Balance sheet

	20116	2015
Assets       Current assets            Cash & cash equivalents            Account receivables            Inventory            Other current assets                Total current assets      L.T. Assets           PPE                Total Assets Liabilities & Shareholders’ Equity       Current liabilities             Accounts payable             Current maturities of notes payable             Accrued expenses             Other current liabilities                    Total current liabilities       L.T. Liabilities              Bank loans                     Total liabilities Shareholders’ equity        Common stock        Retained earnings                    Total shareholders equity                    Total shareholders equity & liab. The balance is well-balanced	4,100 2,733,148 1,389,390      13,901 4,140,539    322,586 4,463,125    276,556 1,834,858    151,817    128,632 2,391,863 1,824,764 4,216,627    46,499 199,999 246,498 4,463,125	3,100 1,941,002 1,468,257               0 3,412,359     60,640 3,472,999 256,419 337,881 169,067 161,905 925,272 2,400,000 3,325,272    46,499 101,228 147,727 3,472,999

Statement of income

	2016	2015
Revenue Cost of Good Sold      Gross profit on sales Operating expenses Repairs and maintenance Depreciation & Amortization Interest expense      Total expenses Net income before taxes Provision for income taxes Net income	$17,285,211 14,947,152     2,338,059    1,871,538         84,483         25,688       215,246    2,196,955       141,104         42,333         98,771	$13,999,979 11,920,400     2,079,579     1,529,231        107,123          24,410        255,003     1,915,767        163,812          65,525          98,287

Rigolo Inc, has paid $10,000 to its preferred shareholders in 2016

Rigolo has issued 50,000 new shares at $10 per share.

Tasks:

            (i) Compute the Basic EPS

            (ii) Compute the diluted EPS

Answer 1