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04problem 3/22/2010 7:08 12/14/2005 Chapter 4. Solution to End-of-Chapter Comprehensive/Spreadsheet Problem Problem 4-25 Corrigan Corporation's December 31 Balance Sheets Assets 2005 2004 Cash $72,000 $65,000 Accounts receivable 439,000 328,000 Inventories 894,000 813,000 Total current assets $1,405,000 $1,206,000 Land and building 238,000 271,000 Machinery 132,000 133,000 Other fixed assets 61,000 57,000 Total assets $1,836,000 $1,667,000 Liabilities and equity Accounts payable $432,000 $409,500 Accrued liabilities 170,000 162,000 Total current liabilities $602,000 $571,500 Long-term debt 404,290 258,898 Common stock 575,000 575,000 Retained earnings 254,710 261,602 Total liabilities and equity $1,836,000 $1,667,000 Corrigan Corporation's December 31 Income Statements 2005 2004 Sales $4,240,000 $3,635,000 Cost of goods sold 3,680,000 2,980,000 Gross operating profit $560,000 $655,000 General admin. and selling epenses 236,320 213,550 Depreciation 159,000 154,500 Miscellaneous 134,000 127,000 EBT $30,680 $159,950 Taxes (40%) 12,272 63,980 Net income $18,408 $95,970 Per-Share Data 2005 2004 EPS $0.80 $4.17 Cash dividends $1.10 $0.95 Market price (average) $12.34 $23.57 P/E ratio 15.4 5.65 Number of shares outstanding 23,000 23,000 Once we have this information set, we can calculate the necessary ratios for this analysis. Ratio Analysis
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EFM-04problem - 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17...

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