30 million preferred stock 250 million common stock Worldwid

30 million preferred stock
250 million common stock

Worldwide Widget Manufacturing, Inc. Income Statement for Years Ending December 31, 2015 and 2014 (in millions of dollars) 2015 0g. ? 2014 $2,018 Net sales Less: Cost of goods sold Gross profits Less: Other operating expenses 753h.? $1,623 8a9 $1,189 - EBITDA) $1,200 $1,022 Less: Depreciation Earnings before interest and taxes (EBIT) Less: Interest Earnings before taxes (EBT) Less: Taxes Net income Less: Preferred stock dividends Net income available to common stock holders Less: Common stock dividends Addition to retained earnings Per (common) share data Earnings per share (EPS) Dividends per share (DPS) Book value per share (BVPS) Market value per share (MVPS) $1,086 908 128 $949 780 234 137 s 664 546 98 98 $566 448 219 199 347 249 k. ? $0.88 .? m. ? $23.97 $22.47 $1.79 $ 5.77 g. Net sales for 2015 h. Less: Cost of goods sold for 2014 831 . Less: Interest for 2015 31 085 Less: Taxes for 2015 j· k. Earnings per share (EPS) for 2015 1. Dividends per share (DPS) for 2014 m. Book value per share (BVPS) for 2015 Graded Project

Solution

G. Net sales for 2015 = (1623 + 753) = $2376.

H. Cost of goods sold for 2014 = (2018-1189) = 829.

I. Interest for 2015 = (1086-949) = 137.

J. Tax for 2015 = (949-664) = 285

K. EPS for 2015 = (566/250) = $2.264

L. DPS for 2014 = (199/250) = $0.769

M. BVPS for 2015 = BVPS of 2014, if no additional is provided = $5.77.

N. Net income = Earning before tax = $949.

For O, P, Q, R, S, T & V additional information is needed. Insufficient data is provided.

U. Dividend paid = (Equity dividend + Preference dividend) = (98+219) = $317