Lisa Inc.\'s balance sheet appears below: Lisa Inc. Statement of Financial Posit

Question

Lisa Inc.'s balance sheet appears below:

Lisa Inc.
Statement of Financial Position
December 31
(in thousands)
Year 2 Year 1
Cash $ 27 $ 25
Marketable securities 15 14
Accounts receivable (net) 44 28
Inventories 59 48
Prepaid expenses 12 15
Total current assets 157 130
Land 155 122
Building (net) 80 90
Equipment (net) 147 147
Total long-term assets 382 359
Total assets $539 $489

Accounts payable $ 52 $ 33
Accrued interest 19 19
Short-term notes payable 28 11
Total current liabilities 99 63
Long-term notes payable 14 14
Bonds payable 17 17
Total long-term liabilities 31 31
Total liabilities 130 94
Preferred stock $(100 par value, 9%) 100 100
Common Stock $(10 par value) 160 160
Additional paid-in capital--common stock 80 80
Retained earnings 69 55
Total stockholders’ equity 409 395
Total liabilities & equity $539 $489

The company's sales for the year were $314 thousand, its cost of goods sold was $211 thousand, and its net income was $33 thousand. All sales were on credit. Preferred dividends for the year were $9 thousand.
Lisa Inc.'s book value per share of common stock at December 31, Year 2, was closest to:
A $18.18
B $25.56
C $19.31
D $12.00

Explanation / Answer

Book value per common is shareholders equity/common shares outstanding. Here equity is 409 and shares outstanding of common are 16 (160common/10 par value) so we have 409/16= 25.56 (b).

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