Question

1. Please fill in the blanks (values of A, B, C, D, E, F, G, H, I , J) for the following financial statements.

   The firm’s tax rate is 35.3%.

   Income Statement for Fiscal Year 2015

   Sales	2,000
   Cost of goods sold	1,500
   Gross margin	500
   Selling and general expenses	300
   Operating income	200
   Interest income	5
   	205
   Interest expense	21
   Restructuring charges	14
   Income before tax	170
   Income tax	60
   Net income	J

   Balance Sheet, Year 2014 and Year 2015

   Assets			Liabilities and Equities
   	Year 2015	Year 2014		Year 2015	Year 2014
   Operating assets	A	910	Operating liabilities	113	C
   Debt securities	110	B	Financing debt	360	340
   			Preferred stock	100	100
   			Common equity	E	500
   	1,146	1,000		D	1,000

   Statement of Common Shareholders Equity, Year 2015

   Balance, end of 2014	F
   Net income	G
   Common dividends	30
   Preferred dividends	H
   Unrealized loss on debt securities held	5
   Foreign currency translation gain	4
   Balance, end of 2015	I

Answer 1

Ans :

Sales	2000
Cost of goods sold	1500
Gross Margin	500
Selling and general expenses	300
Operating Income	200
Interest Income	5
	205
Interest Expense	21
Restructing expense	14
Income before tax	170
Income tax	60
Net Income (J = 170-60)	110

Assets	2015	2014	Liabilities and Equity	2015	2014
Operating assets (A = 1146-100)	1036	910	Operating liabilities (C = 1000-500-100-340)	113	60
Debt securities (B= 1000-910)	110	90	Financing debt	360	340
			Preferred stock	100	100
			Common Equity (E=1146-113-360-100)	573	500
Total assets	1146	1000	Total liabilities (D)	1146	1000

Balance, end of 2014 (F= E)	573
Net Income (G= J)	110
Common Dividends	30
Preferred Dividends (H = 573+110-30-5-4-500)	144
Unrealized loss on debt securities held	5
Foreign currency translation	4
Balance, end of 2015 (I = 500 from balance sheet above	500