Corrigan Corp., balance sheet as of 12/31/15 and 12/31/14 Assets 2015 2014 Cash
ID: 2790895 • 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’s equity for the year ending 12/31/2015. (Only the below lines are to be completed.)
#of shares Amount Retained Earnings Total S/H Equity
Balances, 12/31/14 ________ _________ ________ _____________
2015 Net Income ________
Cash Dividends ________
Add or Sub to R/E ____________
Balances, 12/31/15 _________ _________ ______________ _____________
Explanation / Answer
2014
Shareholders Equity in 2014
Number of shares = 23,000
Amount = $ 575,000
Retained Earnings = $ 261,602
Total Shareholders Equity = 575,000+ 261,602 = $ 836,602
2015
Net Income = $18,408
Cash Dividends = 1.1 * 23,000= $25,300
Retained Earnings = Retained Earnings 2014 + Net Income - Cash Dividends = 261,602+18,408-25300 = $254,710( add net income and sub cash dividends to retained earnings)
Number of shares = 23000
Amount = $575,000
Total Shareholders Equity = 575,000+ 254,710= $ 829,710