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Figure 16-2

Question 69

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Figure 16-2.Financial statements for Grange Company appear below:
Figure 16-2.Financial statements for Grange Company appear below: Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100. -Smith Inc. is a wholesaler of snow skiing gear. During 2014, Smith expanded its retail business by adding over 50 shops. The following information is obtained from the comparative financial statements included in the company's 2014 annual report. \begin{array}{lrr}&\text { Dec. } 31,2014&\text { Dec. } 31,2013\\ \text { Total liabilities } & \$ 26,000,000 & \$ 18,000,000 \\ \text { Total stockholders' equity } & 34,000,000 & 38,000,000\\\\ \text { FOR THE FISCAL YEARS ENDED }&\text { Dec. } 31\\ &2014&2013\\ \text { Depreciation expense } & \$ 2,000,000 & \$ 6,000,000 \\ \text { Interest expense } & 3,400,000 & 3,200,000 \\ \text { Income tax expense } & 12,600,000 & 18,100,000 \\ \text { Net income } & 6,000,000 & 15,000,000 \\ \text { Net cash provided by operations } & 41,000,000 & (400,000) \\ \text { Total dividends paid } & 2,000,000 & 12,000,000 \\ \text { Cash used to purchase plant assets } & 32,000,000 & 18,000,000 \\ \text { Payments on long-term debt } & 1,600,000 & 1,800,000 \end{array} Figure 16-2.Financial statements for Grange Company appear below: Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100. -Smith Inc. is a wholesaler of snow skiing gear. During 2014, Smith expanded its retail business by adding over 50 shops. The following information is obtained from the comparative financial statements included in the company's 2014 annual report. \begin{array}{lrr}&\text { Dec. } 31,2014&\text { Dec. } 31,2013\\ \text { Total liabilities } & \$ 26,000,000 & \$ 18,000,000 \\ \text { Total stockholders' equity } & 34,000,000 & 38,000,000\\\\ \text { FOR THE FISCAL YEARS ENDED }&\text { Dec. } 31\\ &2014&2013\\ \text { Depreciation expense } & \$ 2,000,000 & \$ 6,000,000 \\ \text { Interest expense } & 3,400,000 & 3,200,000 \\ \text { Income tax expense } & 12,600,000 & 18,100,000 \\ \text { Net income } & 6,000,000 & 15,000,000 \\ \text { Net cash provided by operations } & 41,000,000 & (400,000) \\ \text { Total dividends paid } & 2,000,000 & 12,000,000 \\ \text { Cash used to purchase plant assets } & 32,000,000 & 18,000,000 \\ \text { Payments on long-term debt } & 1,600,000 & 1,800,000 \end{array} Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100.
-Smith Inc. is a wholesaler of snow skiing gear. During 2014, Smith expanded its retail business by adding over 50 shops. The following information is obtained from the comparative financial statements included in the company's 2014 annual report.
 Dec. 31,2014 Dec. 31,2013 Total liabilities $26,000,000$18,000,000 Total stockholders’ equity 34,000,00038,000,000 FOR THE FISCAL YEARS ENDED  Dec. 3120142013 Depreciation expense $2,000,000$6,000,000 Interest expense 3,400,0003,200,000 Income tax expense 12,600,00018,100,000 Net income 6,000,00015,000,000 Net cash provided by operations 41,000,000(400,000) Total dividends paid 2,000,00012,000,000 Cash used to purchase plant assets 32,000,00018,000,000 Payments on long-term debt 1,600,0001,800,000\begin{array}{lrr}&\text { Dec. } 31,2014&\text { Dec. } 31,2013\\\text { Total liabilities } & \$ 26,000,000 & \$ 18,000,000 \\\text { Total stockholders' equity } & 34,000,000 & 38,000,000\\\\\text { FOR THE FISCAL YEARS ENDED }&\text { Dec. } 31\\&2014&2013\\\text { Depreciation expense } & \$ 2,000,000 & \$ 6,000,000 \\\text { Interest expense } & 3,400,000 & 3,200,000 \\\text { Income tax expense } & 12,600,000 & 18,100,000 \\\text { Net income } & 6,000,000 & 15,000,000 \\\text { Net cash provided by operations } & 41,000,000 & (400,000) \\\text { Total dividends paid } & 2,000,000 & 12,000,000 \\\text { Cash used to purchase plant assets } & 32,000,000 & 18,000,000 \\\text { Payments on long-term debt } & 1,600,000 & 1,800,000\end{array} Figure 16-2.Financial statements for Grange Company appear below: Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100. -Smith Inc. is a wholesaler of snow skiing gear. During 2014, Smith expanded its retail business by adding over 50 shops. The following information is obtained from the comparative financial statements included in the company's 2014 annual report. \begin{array}{lrr}&\text { Dec. } 31,2014&\text { Dec. } 31,2013\\ \text { Total liabilities } & \$ 26,000,000 & \$ 18,000,000 \\ \text { Total stockholders' equity } & 34,000,000 & 38,000,000\\\\ \text { FOR THE FISCAL YEARS ENDED }&\text { Dec. } 31\\ &2014&2013\\ \text { Depreciation expense } & \$ 2,000,000 & \$ 6,000,000 \\ \text { Interest expense } & 3,400,000 & 3,200,000 \\ \text { Income tax expense } & 12,600,000 & 18,100,000 \\ \text { Net income } & 6,000,000 & 15,000,000 \\ \text { Net cash provided by operations } & 41,000,000 & (400,000) \\ \text { Total dividends paid } & 2,000,000 & 12,000,000 \\ \text { Cash used to purchase plant assets } & 32,000,000 & 18,000,000 \\ \text { Payments on long-term debt } & 1,600,000 & 1,800,000 \end{array}

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