The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
Tax rate
40%
Stock price
$17.00
Shares outstanding
3,800,000
Dividends are 50% of net income
Income Statement
Period Ending
31-Dec-13
Total Revenue
148,239,000
COGS
118,094,000
Selling General and Administrative
13,384,000
Depreciation
72,000
Earnings Before Interest And Taxes
16,689,000
Interest Expense
829,000
Income Before Tax
15,860,000
Income Tax Expense (40%)
6,344,000
Net Income
9,516,000
Balance Sheet
Date
31-Dec-13
Assets
Current Assets
Cash
14,468,000
Net Receivables
98,359,000
Inventory
18,758,000
Total Current Assets
131,585,000
Property Plant and Equipment
70,441,000
Total Assets
202,026,000
Liabilities
Current Liabilities
Accounts Payable
22,446,500
Accruals
14,315,500
Notes Payable
3,631,000
Total Current Liabilities
40,393,000
Long Term Debt
134,919,000
Total Liabilities
175,312,000
Stockholders' Equity
Common Stock
40,000
Retained Earnings
26,674,000
Total Stockholder Equity
26,714,000
Total Assets
202,026,000
Question/Problem
Calculate the common size balance sheet and the common size income statement for the company.
The balance sheet and income statement shown below are for Pettijohn Inc. Note that the firm has no amortization charges, it does not lease any assets, none of its debt must be retired during the next 5 years, and the notes payable will be rolled over.
Tax rate | 40% | |
Stock price | $17.00 | |
Shares outstanding | 3,800,000 | |
Dividends are 50% of net income |
Income Statement | ||||||
Period Ending | 31-Dec-13 | |||||
Total Revenue | 148,239,000 | |||||
COGS | 118,094,000 | |||||
Selling General and Administrative | 13,384,000 | |||||
Depreciation | 72,000 | |||||
Earnings Before Interest And Taxes | 16,689,000 | |||||
Interest Expense | 829,000 | |||||
Income Before Tax | 15,860,000 | |||||
Income Tax Expense (40%) | 6,344,000 | |||||
Net Income | 9,516,000 | |||||
Balance Sheet | ||||||
Date | 31-Dec-13 | |||||
Assets | ||||||
Current Assets | ||||||
Cash | 14,468,000 | |||||
Net Receivables | 98,359,000 | |||||
Inventory | 18,758,000 | |||||
Total Current Assets | 131,585,000 | |||||
Property Plant and Equipment | 70,441,000 | |||||
Total Assets | 202,026,000 | |||||
Liabilities | ||||||
Current Liabilities | ||||||
Accounts Payable | 22,446,500 | |||||
Accruals | 14,315,500 | |||||
Notes Payable | 3,631,000 | |||||
Total Current Liabilities | 40,393,000 | |||||
Long Term Debt | 134,919,000 | |||||
Total Liabilities | 175,312,000 | |||||
Stockholders' Equity | ||||||
Common Stock | 40,000 | |||||
Retained Earnings | 26,674,000 | |||||
Total Stockholder Equity | 26,714,000 | |||||
Total Assets | 202,026,000 | |||||
Question/Problem Calculate the common size balance sheet and the common size income statement for the company. | ||||||