Problem 19-12 Calculating Margins (LO3, CFA6)

Amounts are in thousands of dollars (except number of shares and price per share):

Kiwi Fruit Company Balance Sheet
Cash and equivalents	$600
Operating assets	740
Property, plant, and equipment	2,900
Other assets	155
Total assets	$4,395
Current liabilities	$980
Long-term debt	1,405
Other liabilities	165
Total liabilities	$2,550
Paid in capital	$385
Retained earnings	1,460
Total equity	$1,845
Total liabilities and equity	$4,395

Kiwi Fruit Company Income Statement
Net sales	$8,500
Cost of goods sold	6,800
Gross profit	$1,700
Operating expense	980
Operating income	$720
Other income	150
Net interest expense	200
Pretax income	$670
Income tax	240
Net income	$430
Earnings per share	$2.00
Shares outstanding	215,000
Recent price	$31.00

Kiwi Fruit Company Cash Flow Statement
Net income	$430
Depreciation and amortization	100
Increase in operating assets	80
Decrease in current liabilities	116
Operating cash flow	$334
Net (purchase) sale of property	$190
Increase in other assets	71
Investing cash flow	$119
Net (redemption) issuance of LTD	$172
Dividends paid	178
Financing cash flow	$350
Net cash increase	103