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Question 50 1. Given below are comparative balance sheets and an income statemen

ID: 2444528 • Letter: Q

Question

Question 50

1.        Given below are comparative balance sheets and an income statement for Namekagon Corporation.

Namekagon Corporation balance Sheets - 2011

Namekagon Corporation Income Statement - 2011

Dec. 31

1-Jan

For the year ended 2011

Cash

$15,600

$15,600

Sales

$228,800

Accounts receivable

46,800

37,700

Cost of Goods Sold

-137,540

Inventory

32,500

36,400

Gross profit on sales

$91,260

Equipment (net)

57,200

66,300

Operating expenses

-75,868

$152,100

$156,000

Operating Income

$15,392

Accounts Payable

26,000

28,600

Interest Expense and income taxes

-9,100

Dividends payabl

7,800

3,900

Net income

6,292

Long Term note payable

14,300

14,300

Capital Stock $5 par

72,800

72,800

Retained Earnings

31,200

36,400

$152,100

$156,000

2.       

Namekagon Corporation's book value per share for 2011 is:

A.

$7.32

B.

$10.58

C.

$21.16

D.

$3.14

Namekagon Corporation balance Sheets - 2011

Namekagon Corporation Income Statement - 2011

Dec. 31

1-Jan

For the year ended 2011

Cash

$15,600

$15,600

Sales

$228,800

Accounts receivable

46,800

37,700

Cost of Goods Sold

-137,540

Inventory

32,500

36,400

Gross profit on sales

$91,260

Equipment (net)

57,200

66,300

Operating expenses

-75,868

$152,100

$156,000

Operating Income

$15,392

Accounts Payable

26,000

28,600

Interest Expense and income taxes

-9,100

Dividends payabl

7,800

3,900

Net income

6,292

Long Term note payable

14,300

14,300

Capital Stock $5 par

72,800

72,800

Retained Earnings

31,200

36,400

$152,100

$156,000

Explanation / Answer

A.

$7.32

A.

$7.32

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