【正文】 Equity $427,500 222. Prepare a statement of cash flows for the Jeter Corporation. Follow the general procedures indicated in Table 210. Crosby Corporation Ine Statement For the Year Ended December 31, 2022 Sales $2,200,000 Cost of goods sold 1,300,000 Gross profits 900,000 Selling and administrative expense 420,000 Depreciation expense 150,000 Operating ine 330,000 Interest expense 90,000 Earnings before taxes 240,000 Taxes 80,000 Earnings after taxes 160,000 Preferred stock dividends 10,000 Earnings available to mon stockholders $ 150,000 Shares outstanding 120,000 Earnings per share $ 2 $75,000 + $37,500 = $112,500 Copyright 169。 2022 by The McGrawHill Companies, Inc. S23 Current Assets Liabilities Cash $ 15,000 Accounts payable $26,000 Accounts receivable 27,000 Notes payable 40,000 Inventory 45,000 Bonds payable 60,000 Prepaid expenses 18,000 _______ $105,000 $126,000 221. Continued Fixed Assets Stockholders39。 equity $393,000 Sales for 2022 were $330,000, with cost of goods sold was 60 percent of sales. Selling and administrative expense was $33,000. Depreciation expense was 10 percent of plant and equipment (gross) at the beginning of the year. Interest expense for the notes payable was 10 percent, while interest on bonds payable was 12 percent. These were based on December 31, 2022, balances. The tax rate averaged 20 percent. 221. Continued Two thousand dollars in preferred stock dividend were paid, and $4,100 in dividends were paid to mon stockholders. There were 10,000 shares of mon stock outstanding. Copyright 169。 2022 by The McGrawHill Companies, Inc. S21 r at i o P / $ 1 . 4 0$ 3 0 . 0 0r at i o P / Es h ar ep er E ar n i n g sP r i ce30$$2p r i ce b o o k v al u e2?????? 221. For December 31, 2022, the balance sheet of the Gardner Corporation is as follows: Current Assets Cash $ 15,000 Accounts receivable 22,500 Inventory 37,500 Prepaid expenses 18,000 Fixed Assets Plant and equipment (gross) $375,000 Less: Accumulated Depreciation 75,000 Net plant and assets 300,000 Total assets $393,000 Liabilities Accounts payable $ 20,000 Notes payable 30,000 Bonds payable 75,000 Stockholders39。 30,000 shares of mon stock have been issued a. Compute book values ( worth) per share. b. If there is $42,000 in earnings available to mon stockholders and Bradley’s stock has a P/E of 15 times earnings per share, what is the current price of the stock? c. What is the ratio of market value per share to book value per share? Solution: Bradley Gypsum Company a. Total assets Current liabilities Longterm liabilities Stockholders39。 equity Preferred stock Net worth assigned to mon Common shares outstanding Book values ( worth) per share b. Earnings available to mon Shares outstanding Earnings per share $400,000 50,000 100,000 $250,000 40,000 $210,000 20,000 $ $22,000 20,000 $ $$18 p r i ces h ar ep er ea r n i n g sr at i o P / E ?? ?? c. Market value per share (price) to book value per share $$ = Copyright 169。 equity – Preferred stock obligation Net worth assigned to mon Common shares outstanding Book value ( worth) per share $960,000 90,000 160,000 $710,000 90,000 $620,000 40,000 $ 218. The Holtzman Corporation has assets of $400,000, current liabilities of $50,000, and longterm liabilities of $100,000. There is $40,000 in preferred stock outstanding。 Equity $ 35,000 83,000 $118,000 142,000 $260,000 50,000 150,000 88,000 110,000 $398,000 $658,000 217. Horton Electronics has current assets of $320,000 and fixed assets of $640,000. Current liabilities are $90,000 and longterm liabilities are $160,000. There is $90,000 in preferred stock outstanding and the firm has issued 40,000 shares of mon stock. Compute book value ( worth) per share. Solution: Horton Energy Company Current assets Fixed assets $320,000 640,000 Copyright 169。 Equity: Preferred stock, $50 par, 1,000 shares outstanding Common stock, $1 par, 150,000 shares outstanding Capital paid in excess of par (mon stock) Retained earnings Total Stockholders39。 2022 by The McGrawHill Companies, Inc. S18 Assets Current Assets: Cash Marketable securities Accounts receivable Less: Allowance for bad debts Inventory Total Current Assets Other Assets: Investments Fixed Assts: Plant and equipment Less: Accumulated depreciation Net plant and equipment Total Assets $ 38,000 6,000 $720,000 200,000 $ 5,000 15,000 32,000 66,000 $118,000 20,000 520,000 $658,000 216. Continued Liabilities and Stockholders39。 Equipment IS Operating Expenses BS CA Marketable Securities IS Interest Expense IS Sales BS CL Notes Payable (6 months) BS LL Bonds payable (Maturity 2022) BS SE Common Stock IS Depreciation Expense BS CA Inventories BS SE Capital in excess of par value IS Net Ine (Earnings after Taxes) BS CL Ine tax payable Copyright 169。 equity (SE). 4. Fixed assets (FA). Indicate Whether Item is on Balance Sheet (BS) or Ine Statement (IS) ______________ ______________ ______________ ______________ ______________ ____________________________ ______________ ______________ If on Balance Sheet, Designate Which Category ______________