公司财务原理Problems36.pptVIP

Fall 2009 PROBLEMS Frantic Fast Foods had earnings after tax of $390,000 in the year 2000 with 300,000 shares outstanding. On January 1, 2001, the firm issued 25,000 new shares. Because of the proceeds from these new shares and other operating improvements, earnings after tax increased by 20% 1)Compute Earnings per Share (EPS) for the year 2000 2)Compute Earnings per Share (EPS) for the year 2001 Given the following information prepare in good form an Income Statement for Dental Drilling Company Selling and Administrative Expense 60,000 Depreciation Expense 70,000 Sales 470,000 Interest Expense 40,000 Cost of Goods Sold 140,000 Taxes 45,000 Prepare in good form an Income Statement for ATM Cards Inc. Take the calculations all the way to computing Earnings per Share (EPS) Sales 800,000 Shares Outstanding 100,000 Cost of Goods Sold 300,000 Interest Expense 20,000 Selling and Administrative Expense 40,000 Depreciation Expense 30,000 Preferred Stock Dividends 80,000 Taxes 110,000 Censored Books, Inc sold 1,400 Finance textbooks for $100 each To High Tuition University in 2001. These books cost $71 to produce. Censored Books spent $5,000 (selling expense) to convince the university to buy its books. In addition, Censored Books borrowed $46,000 on January 1, 2001, on which the company paid 10% interest. Both principal and interest on the loan were paid on December 31, 2001. The publication firm’s tax rate is 30%. Depreciation expense for the year was $8,000. Did Censored Books, Inc make a profit in 2001? Please verify with an Income Statement prepared in good form. Lemon Auto Wholesalers had Sales of $700,000 in 2001 and Cost of Goods Sold represented 70% of Sales. Selling and Administrative expense were 12% of Sales. Depreciation Expense was $10,000 and Interest Expense for the year was $8,000. The firm’s tax rate is 30%. Compute Net Income (earnings after taxes) Assume the firm hires Ms. Carr, an efficie