Problem 9-01

From the following information, construct a simple income statement and a balance sheet:

Sales	$1,200,000
Finished goods	180,000
Long-term debt	300,000
Raw materials	150,000
Cash	35,000
Cost of goods sold	540,000
Accounts receivable	200,000
Plant and equipment	430,000
Interest expense	100,000
Number of shares outstanding	80,000
Earnings before taxes	500,000
Taxes	80,000
Accounts payable	200,000
Other current liabilities	50,000
Other expenses	60,000
Equity	445,000

Round your answer for earnings per share to the nearest cent.

Corporation X:
Income Statement for the Year Ended XX/XX/XX
Sales	$
Cost of goods sold
Other expenses
Earnings before interest and taxes
Interest expense
Earnings before taxes
Taxes
Net earnings	$
Number of shares outstanding
Earnings per share	$

Corporation X Balance Sheet as of XX/XX/XX
Assets						Liabilities and Owners' Equity
Cash			$			Accounts payable	$
Accounts receivable						Other current liabilities
Inventories						Total current liabilities	$
Raw materials	$					Long-term debt
Finished goods						Equity
Total inventories
Total current assets			$
Plant and Equipment
Total assets			$			Total liabilities and shareholders equity	$