Question: question 4 1. Building a Balance Sheet Bing, Inc., has current assets of $5,400, net fixed assets of $28,100, current liabilities of $4,100, and long-term

question 4

1. Building a Balance Sheet Bing, Inc., has current assets of $5,400, net fixed assets of $28,100, current liabilities of $4,100, and long-term debt of $10,600. What is the value of the shareholders' equity account for this firm? How much is net working capital? Net working capital = current assets - current liabilities =$5400$4100=$1,300 2. Building an Income Statement Nataro, Inc., has sales of $742,000, costs of $316,000, depreciation expense of $39,000, interest expense of $34,000, and a tax rate of 21 percent. What is the net income for this firm? Net income = total revenue total expenses =742,000(316,000+39,000+34,000)(12%)=$278,870 3. Dividends and Retained Earnings: Suppose the firm in Problem 2 paid out $125,000 in cash dividends. What is the addition to retained earnings? Addition to retained earning =278,870125,000 =$153,870 4. Per-Share Earnings and Dividends: Suppose the firm in Problem 3 had 75,000 shares of common stock outstanding. What is the earnings per share, or EPS, figure? What is the dividends per share figure

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