Balance Sheet (Millions of $) Assets 2014 2013 Cash and securities 2,500 Account
ID: 2649107 • Letter: B
Question
Balance Sheet (Millions of $)
Assets
2014
2013
Cash and securities
2,500
Accounts receivable
11,500
Inventories
16,000
Total current assets
30,000
Net plant and equipment
30,000
Total assets
60,000
50,000
Liabilities and Equity
Accounts payable
9,500
Notes payable
7,000
Accruals
5,500
Total current liabilities
22,000
Long-term bonds
25,000
Total Liabilities
47,000
Common stock
2,000
Retained earnings
11,000
Total common equity
13,000
10,000
Total liabilities and equity
60,000
50,000
Income Statement (Millions of $)
2014
2013
Net sales
97,500
90,000
Operating costs except depreciation
91,813
Depreciation
1,531
Earnings before interest and taxes (EBIT)
$4,156
Less interest
1,375
Earnings before taxes (EBT)
$2,781
Taxes
973
Net income
1,808
1,500
Other Data
Shares outstanding (millions)
500.00
Year-end stock price
$50.00
Common dividends
$632.73
Coupon rate on notes payable & L-T bonds
6.25%
Yield to maturity on debt
6.75%
Interest rate on 20-year U.S. Treasury Bonds
5.00%
Expected annual return on the S&P 500 Index
11.00%
Federal plus state income tax rate
35%
Koski's Beta
1.20
Part A
Balance Sheet (Millions of $)
Assets
2014
2013
Cash and securities
2,500
Accounts receivable
11,500
Inventories
16,000
Total current assets
30,000
Net plant and equipment
30,000
Total assets
60,000
50,000
Liabilities and Equity
Accounts payable
9,500
Notes payable
7,000
Accruals
5,500
Total current liabilities
22,000
Long-term bonds
25,000
Total Liabilities
47,000
Common stock
2,000
Retained earnings
11,000
Total common equity
13,000
10,000
Total liabilities and equity
60,000
50,000
Income Statement (Millions of $)
2014
2013
Net sales
97,500
90,000
Operating costs except depreciation
91,813
Depreciation
1,531
Earnings before interest and taxes (EBIT)
$4,156
Less interest
1,375
Earnings before taxes (EBT)
$2,781
Taxes
973
Net income
1,808
1,500
Other Data
Shares outstanding (millions)
500.00
Year-end stock price
$50.00
Common dividends
$632.73
Coupon rate on notes payable & L-T bonds
6.25%
Yield to maturity on debt
6.75%
Interest rate on 20-year U.S. Treasury Bonds
5.00%
Expected annual return on the S&P 500 Index
11.00%
Federal plus state income tax rate
35%
Koski's Beta
1.20
Explanation / Answer
Part A
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