Technica, Inc.
Income Statement
for the Year Ended December 31, 

 

Sales revenue

 

$600,000

Less: Cost of goods sold

 

460,000

Gross profits

 

$140,000

Less: Operating expenses

 

 

General and administrative expense

$30,000

Depreciation expense

30,000

Total operating expense

 

60,000

Operating profits

 

$80,000

Less: Interest expense

 

10,000

Net profits before taxes

 

$70,000

Less: Taxes

 

27,100

Earnings available for common stockholders

 

$42,900

Earnings per share (EPS)

 

$2.15

Technica, Inc.
Balance Sheets

December 31

Assets

2003

2002

Cash

$15,000

$16,000

Marketable securities

7,200

8,000

Accounts receivable

34,100

42,200

Inventories

82,000

50,000

Total current assets

$138,300

$116,200

Land and buildings

$150,000

$150,000

Machinery and equipment

200,000

190,000

Furniture and fixtures

54,000

50,000

Other

11,000

10,000

Total gross fixed assets

$415,000

$400,000

Less: Accumulated depreciation

$145,000

115,000

Net fixed assets

$270,000

$285,000

Total assets

$408,300

$401,200

Liabilities and Stockholders’ Equity

 

 

Accounts payable

$57,000

$49,000

Notes payable

13,000

16,000

Accruals

5,000

6,000

Total current liabilities

$75,000

$71,000

Long-term debt

$150,000

$160,000

Stockholders’ equity

 

Common stock equity (shares

 

outstanding: 19,500 in 2003 and

 

 

20,000 in 2002)

$110,200

$120,000

Retained earnings

73,100

50,200

Total stockholders’ equity

$183,300

$170,200

Total liabilities and stockholders’ equity

$408,300

$401,200

Technica, Inc.
Statement of Retained Earnings
for the Year Ended December 31, 2003

Retained earnings balance (January 1, 2003)

$50,200

Plus: Net profits after taxes (for 2003)

42,900

Less: Cash dividends (paid during 2003)

(20,000)

Retained earnings balance (December 31, 2003)

$73,100