Reference no: EM131501343
"Copper Corporation Balance Sheets – Current Year Dec. 31 Jan. 1 " "Copper Corporation Income Statement for the Current Year"
Cash $ 31,600 $ 26,900 Sales $936,000
Accounts receivable 252,000 216,000 Cost of goods sold (515,000)
Inventory 173,000 178,000 Gross profit on sales $421,000
Equipment (net) 129,000 152,000 Operating expenses (332,000)
$585,600 $572,900 Operating income $ 89,000
Accounts payable $135,000 $147,000 Interest expense and income taxes (39,000)
Dividends payable 18,000 14,000 Profit $ 50.000
Share capital, $9 par 90,000 90,000
Retained earnings 342,600 321,900
$585,600 $572,900
1. All sales were made on account. Cash dividends declared during the year totaled $29,300.
Compute and interpret the following:
a Average accounts receivable turnover
b Book value per share at the end of the current year
c Earnings per share
d Return on assets
e Return on ordinary shareholders’ equity
2. Saudi Electricity Company management has just completed an assessment of the company’s assets and liabilities as on 31-12-2016 and has obtained the following information.
A) 1-The firm has total current assets worth $625,000 at book value and $519,000 at market value.
B) Its long-term assets include plant and equipment valued at market for $695,000, While their book value is $940,000.
C) The Company’s total current liabilities are valued at market for $543,000, while their book value is $495,000. Both the book value and the market value of long-term debt is $350,000.
D) If the company’s total assets are equal to a market value of $1,214,000 (book value of $1,565,000),
From the above information:
What are the book value and market value of its stockholders’ equity?