Purchase Solution

# Earnings Per Share - Calculation

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34.
Construct a balance sheet for Sophie's Sofas given the following data. (Be sure to list the assets and liabilities in order of their liquidity.)

Cash balances = \$ 11,500
Inventory of sofas = \$ 215,000
Store and property = \$ 115,000
Accounts receivable = \$ 23,500
Accounts payable = \$ 18,500
Long-term debt = \$ 185,000
________________________________________

BALANCE SHEET OF SOPHIE'S SOFAS
Assets Liabilities & Shareholders' Equity

35.
The table below contains data on Fincorp, Inc., the balance sheet items correspond to values at year-end of 2010 and 2011, while the income statement items correspond to revenues or expenses during the year ending in either 2010 or 2011. All values are in thousands of dollars.

2010 2011
Revenue \$4,300 \$4,400
Cost of goods sold 1,750 1,850
Depreciation 530 550
Inventories 315 380
Interest expense 180 180
Federal and state taxes* 430 450
Accounts payable 315 380
Accounts receivable 418 480
Net fixed assets† 5,300 6,130
Long-term debt 2,300 2,700
Notes payable 1,015 630
Dividends paid 470 470
Cash and marketable securities 830 330
________________________________________

* Taxes are paid in their entirety in the year that the tax obligation is incurred.
† Net fixed assets are fixed assets net of accumulated depreciation since the asset was installed.

Suppose that Fincorp has 500,000 shares outstanding. What were earnings per share? (Round your answers to 2 decimal places.)

Earnings per Share

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The expert examines earning per share calculation.

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• BA, Ain Shams University, Cairo Egypt
• MBA, California State University, Sacramento
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