Principles of Managerial Finance

CHAPTER 2 Financial Statements and Analysis 87

Note: Industry averages appear at the top of the following page.

Fox Manufacturing Company

Balance Sheet

December 31, 2003

Assets

Cash $ 15,000

Marketable securities 7,200

Accounts receivable 34,100

Inventories  (^8)  (^2) , (^0)  (^0)  (^0) 
Total current assets $138,300
Net fixed assets $ (^2)  (^7)  (^0) , (^0)  (^0)  (^0) 
Total assets $

4

0

8

,

3

0

0

Liabilities and Stockholders’ Equity
Accounts payable $ 57,000
Notes payable 13,000
Accruals  (^5) , (^0)  (^0)  (^0) 
Total current liabilities $ (^7)  (^5) , (^0)  (^0)  (^0) 
Long-term debt $ (^1)  (^5)  (^0) , (^0)  (^0)  (^0) 
Stockholders’ equity
Common stock equity (20,000 shares outstanding) $110,200
Retained earnings  (^7)  (^3) , (^1)  (^0)  (^0) 
Total stockholders’ equity $ (^1)  (^8)  (^3) , (^3)  (^0)  (^0) 
Total liabilities and stockholders’ equity $

4

0

8

,

3

0

0

Fox Manufacturing Company
Income Statement
for the Year Ended December 31, 2003
Sales revenue $600,000
Less: Cost of goods sold  (^4)  (^6)  (^0) , (^0)  (^0)  (^0) 
Gross profits $140,000
Less: Operating expenses
General and administrative expenses $30,000
Depreciation expense  (^3)  (^0) , (^0)  (^0)  (^0) 
Total operating expense  (^6)  (^0) , (^0)  (^0)  (^0) 
Operating profits $ 80,000
Less: Interest expense  (^1)  (^0) , (^0)  (^0)  (^0) 
Net profits before taxes $ 70,000
Less: Taxes  (^2)  (^7) , (^1)  (^0)  (^0) 
Net profits after taxes (earnings available
for common stockholders) $

4

2

,

9

0

0

Earnings per share (EPS) $2.15