Question 1: Construct a balance sheet for Sophie’s Sofas given the following data. (Be sure to list the assets and liabilities in order of their liquidity.)
|
Cash balances
|
=
|
$
|
11,500
|
|
Inventory of sofas
|
=
|
$
|
215,000
|
|
Store and property
|
=
|
$
|
115,000
|
|
Accounts receivable
|
=
|
$
|
23,500
|
|
Accounts payable
|
=
|
$
|
18,500
|
|
Long-term debt
|
=
|
$
|
185,000
|
Question 2: The table below contains data on Fincorp, Inc., the balance sheet items correspond to values at year-end of 2010 and 2011, while the income statement items correspond to revenues or expenses during the year ending in either 2010 or 2011. All values are in thousands of dollars.
|
|
2010
|
2011
|
|
Revenue
|
$4,300
|
$4,400
|
|
Cost of goods sold
|
1,750
|
1,850
|
|
Depreciation
|
530
|
550
|
|
Inventories
|
315
|
380
|
|
Administrative expenses
|
530
|
580
|
|
Interest expense
|
180
|
180
|
|
Federal and state taxes*
|
430
|
450
|
|
Accounts payable
|
315
|
380
|
|
Accounts receivable
|
418
|
480
|
|
Net fixed assets†
|
5,300
|
6,130
|
|
Long-term debt
|
2,300
|
2,700
|
|
Notes payable
|
1,015
|
630
|
|
Dividends paid
|
470
|
470
|
|
Cash and marketable securities
|
830
|
330
|
|
|
|
Taxes are paid in their entirety in the year that the tax obligation is incurred.
Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed.
Suppose that Fincorp has 500,000 shares outstanding. What were earnings per share? (Round your answers to 2 decimal places.)