$*$ a$.$ Given the following information, calculate Total

Common Equity:

$$ Total Assets: $$500,000$

Total Liabilities: $$350,000(5$ Points$)$

Total Common Equity:

b$.$ Explain the difference between Net Working Capital

and Net Operating Working Capital $($NOWC$).(5$

Points$)$

Income Statement $(10$ Points$)$

a$.$ Using the information below, derive Net Income and

Earnings Per Share $($EPS$)$:

@ Revenue: $$200,000$

@ Operating Expenses: $$120,000$

@ Interest Expense: $$10,000$

@ Taxes: $30\%$

@ Shares Outstanding: $50,000(10$ Points$)$

Net Income:

Earnings Per Share $($EPS$)$:

Constructing Financial Statements $(10$ Points$)$

Create a basic balance sheet using the following data:

@ Cash: $$50,000$

Accounts Receivable: $$30,000$

@ Inventory: $$20,000$

Accounts Payable: $$15,000$

Long$-$term Debt: $$40,000$

@ Common Stock: $$20,000$

Retained Earnings: $?($Use the information

provided to solve for Retained Earnings$)(10$

Points$)$

Retained Earnings:

Section II: Financial Statement Analysis $(30$ Points$)$

Ratio Analysis $(30$ Points$)$

Given the following data, calculate the specified ratios:

Current Assets: $$120,000$

Inventory: $$40,000$

Current Liabilities: $$60,000$

Total Liabilities: $$200,000$

Net Income: $$25,000$

Sales: $$150,000$

Total Assets: $$400,000$

Total Equity: $$200,000$

Market Price per Share: $$50$