Retained Earnings
2010 2009
R/E @ the beginning 407,000 61,000
Add net income 395,000 373,000
Total 802,000 434,000
Deduct Dividends
On preferred stock 3,000 3,000
On common stock 24,000 24,000
Total 27,000 27,000
R/E @ the End 775,000 407,000
Income Statements
2010 2009
GROSS sales 1,502,000 1,403,000
Returns & Allowances 2,000 3,000
NET sales 1,500,000 1,400,000
Cost of Goods sold 480,000 450,000
Gross Profit 1,020,000 950,000
Selling Expenses 300,000 275,000
Administrative Exp. 200,000 198,000
Total Op. Exp. 500,000 473,000
Income from Ops 520,000 477,000
Other Income 24,000 5,000
544,000 482,000
Interest expense 100,000 70,000
Income Before taxes 444,000 412,000
Income tax expense 49,000 39,000
Net Income 395,000 373,000
Assets
2010 2009
Current Assets:
Cash 200,000 100,000
Temp Investments 350,000 300,000
A/R 250,000 200,000
Inventories 200,000 100,000
Prepaid Exp. 103,000 23,000
Total current Assets 1,103,000 723,000
Long term Investments 250,000 250,000
PP&E(net) 1,000,000 975,000
Total assets 2,353,000 1,948,000
Liabilities
2010 2009
Current liabilities 278,000 241,000
Long-term Liabilities
Mortgage Note 6% 200,000
Bonds payable 9% 800,000 1,000,000
Total LT liabilities 1,000,000 1,000,000
Total liabilities 1,278,000 1,241,000
Stockholder’s Equity
2010 2009
Preferred $3 stock, $50 Par 100,000 100,000
Common Stock $5 Par 200,000 200,000
Retained Earnings 775,000 407,000
Total Stockholder’s equity 1,075,000 707,000
Total Liabilities & Stockholders equity 2,353,000 1,948,000
*The stock is selling at $50 a share
1. Working Capital for year end 2010 ____________________
2.Current Ratio for year end 2010____________________
3.Quick ratio for year end 2010__________________
4. A/R turnover for 2010____________________
5. Days to collect average A/R for 2010 _____________
6. Inventory turnover for 2010___________________
7. Days to sell Average inventory for 2010___________________