Question: Manonta Sales Company s summary statement of financial position and income

Manonta Sales Company’s summary statement of financial position and income statement as at December 31, 2015, follow.
Statement of Financial Position (in thousands)
Current assets........... $150,000
Net property, plant, and equipment.. 75,000
Total assets............ $225,000
Current liabilities........... $ 95,000
Long-term debt........... 90,000
Shareholders’ equity........ 40,000
Total liabilities and shareholders’ equity.. $225,000
Statement of Income (in thousands)
Sales revenue ............. $460,000
Cost of goods sold, operating, and other expenses 420,000
Income before income taxes........ 40,000
Income taxes............. 14,000
Net income............... $ 26,000
Earnings per share............. $ 1.30
Required:
Based on the information available, should you keep the shares or sell them? Support your answer with a detailed analysis.


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  • CreatedJune 12, 2015
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