A. Use the statements provided in a separate Excel file, Test


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Jun 26, 2015. A. Use the statements provided in a separate Excel file, Test Company.xls, to determine the following. Be sure to show your work. 1) The total dollar investment in assets made during 2004 and the sources of the funds invested. 2) The company’s earnings per share (EPS) in 2003 and 2004. 3) The total dividends paid and dividends per share (DPS) in 2003 and 2004. 4) The average amount the company received from the sale of all common shares outstanding in 2003 and those sold in 2004. 5) Retained earnings as of the beginning of the 2003 fiscal year. 6) Test Company’s book value and book value per share at the end of the 2003 and 2004 fiscal years. B. Prepare a statement of cash flows for Sample Company for the 2004 fiscal year and interpret the statement. ATTACHMENT PREVIEW Download attachment Test Company.xls Sample Company Balance Sheets As at August 31 (in $000) 2003 Current Assets: Cash Accounts receivable Inventory Prepaid expenses Total current assets Investments Fixed Assets: Land Buildings Furniture and fixtures Fixed assets, cost Less: accumulated amortization Total fixed assets (net) Total Assets Liabilities & Equity Current liabilities: Accounts payable Line of credit Income taxes payable Current ptn of LTD Total current liabilities Bank loan (due December 31, 2010) Other long-term loans Total liabilities Equity Preferred shares Common shares Retained earnings Total equity Total Liabilities & Equity 2004 $1.20 9.2 1,148.10 5.3 1,163.80 44 $1.30 43.2 1,155.40 6 1,205.90 529.7 25.5 25.5 374 591.1 61.9 158.5 461.4 775.1 167.2 221 294.2 554.1 $1,502.00 $2,289.70 $379.80 133 123.7 9.9 646.4 0 152.8 799.2 $223.70 192.7 2.5 76 494.9 310.6 727.7 1,533.20 67.4 82.4 42.6 52.6 592.8 621.5 702.8 756.5 $1,502.00 $2,289.70 Sample Company Income Statements For Years Ending August 31 (in $000) 2003 Sales Cost of goods sold Gross margin Operating expenses: Salaries and benefits Administrative expenses Advertising Amortization Total operating expenses Operating earnings (EBIT) Less: interest expense Earnings before tax Income taxes NIAT 2004 $1,721.50 $1,982.80 774 945.6 947.5 1,037.20 384.1 98.6 111.4 44.6 638.7 308.8 34.8 274 68.4 $205.60 467.2 119.2 139.4 53.8 779.6 257.6 152.1 105.5 26.4 $79.10 1) In 2003, the company had 12,000 preferred shares and 122,300 common shares outstanding. In 2004, Sample Company sold 1,500 preferred and 800 common shares. The company pays a dividend of $1 per share on the preferred shares. In 2003, Sample Company paid common share dividends of $36,690. 2) Sample Company is a CCPC and is a manufacturer. The amount of CCA the company could claim in 2003 and 2004 was $36,120 and $71,485 respectively. Read more frank1322
posted a question · Jun 23, 2015 at 10:34pm

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