Corrigan Corp., Balance Sheet as of 12/31/15 and 12/31/14 Assets 2015 2014 Cash
ID: 2640193 • Letter: C
Question
Corrigan Corp., Balance Sheet as of 12/31/15 and 12/31/14
Assets 2015 2014
Cash $72,000 $65,000
Accts Receivable 439,000 328,000
Inventories 894,000 813,000
Total Current Assets 1,405,000 1,206,000
Land & Building 238,000 271,000
Machinery 132,000 133,000
Other Fixed Assets 61,000 57,000
Total Assets 1,836,000 1,667,000
Liabilities & Equity
Accounts Payable $152,000 $109,500
Notes Payable 280,000 300,000
Accrued Liabilities 170,000 162,000
Total Current Liabilities 602,000 571,500
Long Term Debt 404,290 258,898
Common Stock 575,000 575,000
Retained Earnings 254,710 261,602
Total Liabilities & Equity 1,836,000 1,667,000
Corrigan Corp., Income Statement for periods ending 12/31/15 & 12/31/14
2015 2014
Sales $4,240,000 $3,635,000
Cost of Goods Sold 3,680,000 2,980,000
Gross Operating Profit 560,000 655,000
General Admin. Expenses 236,320 213,550
Depreciation 159,000 154,500
Miscellaneous 134,000 127,000
E.B.T. 30,680 159,950
Taxes (40%) 12,272 63,980
Net Income 18,408 95,970
Per Share Data 2015 2014
EPS 0.80 4.17
Cash Dividends 1.10 0.95
Market Price (avg.) 12.34 23.57
P/E Ratio 15.425 5.652278
Number of Shares Outstanding 23,000 23,000
Using the Balance Sheet, Income Statement and Per Share Data for Corrigan Corp. complete a Statement of Stockholder
Explanation / Answer
Ans. The question has been solved using excel. The formula used has also been given in the table (given below).
No of shares Amount Retained Earnings Total S/H Equity Balance 12/31/2014 23000 542110 261602 Add: Net Income during 2015 18408 Less: Dividends paid 25300 Balances 12/31/2015 23000 283820 254710 S/H Equity Balance = No. of shares* Price per share For 2014, Price per share = 23.57 For2015, Price per share = 12.34 Retained earnings(current year) = Retained earnings (previous year)+ Net Income during the year -Dividends paid during the year