Ch13 p11 build a model

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Unformatted text preview: 4/16/2010 Chapter 13. Ch 13-11 Build a Model Income Statement for the Year Ending December 31 (Millions of Dollars) 2010 Net Sales $800.0 Costs (except depreciation) $576.0 Depreciation $60.0 Total operating costs $636.0 Earning before int. & tax $164.0 Less interest $32.0 Earning before taxes $132.0 Taxes (40%) $52.8 Net income before pref. div. $79.2 Preferred div. $1.4 Net income avail. for com. div. $77.9 Common dividends $31.1 Addition to retained earnings $46.7 Number of shares (in millions) 10 Dividends per share $3.11 Balance Sheets for December 31 (Millions of Dollars) Assets 2010 Liabilities and Equity 2010 Cash $8.0 Accounts Payable $16.0 Marketable Securities 20.0 Notes payable 40.0 Accounts receivable 80.0 Accruals 40.0 Inventories 160.0 Total current liabilities $96.0 Total current assets $268.0 Long-term bonds $300.0 Net plant and equipment 600.0 Preferred stock $15.0 Total Assets $868.0 $257.0 Retained earnings 200.0 Common equity $457.0 Total liabilities and equity $868.0 Projected ratios and selected information for the current and projected years are shown below....
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