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P2: Financial Analysis
The Lightning Co. has the following financial statements:
Sales
$29,540,000
Costs
2,500,000
Depreciation and amortization
1,169,600
EBIT
25,870,400
Less Interest expense
1,280,400
Earnings before taxes (EBT)
24,590,000
Taxes (35%)
8,606,500
Net income
$15,983,500
Dividends
$361,500
Addition to retained earnings
15,622,000
Assets
Liabilities
Cash and equivalents
$1,430,000
Accounts receivable
1,725,000
Accounts payable
$1,225,000
Accruals
1,275,000
Inventories
3,745,000
Notes payable
2,600,000
Current assets
$6,900,000
Current Liabilities
$5,100,000
Net Fixed assets
$18.000.000
Long-term debt
5,800,000
Total assets
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Common stock
$3,100,000
retained earnings
10,900,000
Total equity
$14,000,000
$24,900,000
Total L&E
$24,900,000
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