FINANCIAL
STATEMENT ANALYSIS 1-29
þ
PROGRESS CHECK 1.3
Directions: Use the Balance Sheet and Income Statement information presented below
to answer the questions. Calculate the answer to each question, then check
your solution with the Answer Key on the next page.
Fruit Packing, Inc. -- Balance Sheet
December 31, 1993
(In Millions $)
ASSETS
1992
1993
LIABILITIES AND EQUITY
1992
1993
Cash
Marketable Securities
Accounts Receivable
Raw Goods Inventory
Finished Goods Inventory
Prepaid Expenses
Other Current Assets
Total Current Assets
6.7
0.0
22.4
19.2
22.3
1.2
0.8
72.6
7.4
0.6
23.7
19.5
22.4
1.5
0.8
75.9
Accounts Payable - Fruit
Accounts Payable - Material
Notes Payable
Accrued Wages and Taxes
Other Current Liabilities
Total Current Liabilities
9.6
9.2
21.8
1.5
0.7
42.8
10.2
9.6
23.0
1.7
0.6
45.1
Gross Fixed Assets
Less Depreciation
Net Fixed Assets
97.5
16.8
80.7
101.2
19.9
81.3
Long-term Debt
Preferred Stock
Total Long-term Liabilities
46.1
7.8
96.7
45.1
7.8
98.0
Common Stock
Retained Earnings
Total Common Equity
15.1
41.5
56.6
15.1
44.1
59.2
Total Assets
153.3
157.2
Total Liabilities and Equity
153.3
157.2
Fruit Packing, Inc. -- Income Statement
December 31, 1993
(In Millions $)
Net Sales
150.6
Operating Expenses
101.2
Depreciation
3.1
EBIT
46.3
Interest Expense
11.5
Earnings Before Taxes
34.8
Taxes (@ 40%)
13.9
Net Income to Shareholders
20.9
Preferred Dividends
6.3
Net Income to Common
14.6
Common Dividends
12.0
Earnings Retained
2.6