Question Details

Prepare an income statement for Spanish Fort 



Ex. 1
In 2014, Spanish Fort Corporation had net sales of $500,000 and cost of goods sold of $300,000. Operating expenses were $93,000, and interest expense was $7,500. The corporation's tax rate is 30%. The corporation declared preferred dividends of $7,000 in 2014, and its average common stockholders' equity during the year was $500,000.

Instructions
(a) Prepare an income statement for Spanish Fort Corporation.
(b) Compute Tubb Corporation's return on common stockholders' equity for 2014.


Ex. 2
The following financial information is available for Makoto Corporation.
	     2014     	    2013	
Average common stockholders' equity	$1,600,000	$1,200,000
Dividends paid to common stockholders	50,000	30,000
Dividends paid to preferred stockholders	20,000	20,000
Net income	260,000	182,000

The weighted average number of shares of common stock outstanding was 80,000 for 2013 and 100,000 for 2014.

Instructions
Calculate earnings per share and return on common stockholders' equity for 2014 and 2013.





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