"Prepare responses to Problem Sets P2-6A (Page 85-86), and P13-2A (Page 731-732), from Chapter 2 and 13 of
Financial Accounting: Tools for business decision making (6th ed.) by John Wiley & Sons." P2-6A Condensed balance sheet and income statement data for Sievert Corporation "SIEVERT CORPORATION
Balance Sheets
December 31" Assets 2012 2011 Cash $28,000 $20,000 Receivables (net) 70,000 62,000 Other current assets 90,000 73,000 Long-term investments 62,000 60,000 Plant and equipment (net) 510,000 470,000 Total assets $760,000 $685,000 Liabilities and Stockholders’ Equity Current liabilities 75,000 70,000 Long-term debt 80,000 90,000 Common stock 330000 300000 Retained earnings 275000 225000 Total liabilities and stockholders’ equity 760,000 685,000 "SIEVERT CORPORATION
Income Statement
For the Years Ended December 31" 2012 2011 Sales $750,000 $680,000 Cost of goods sold 440,000 400,000 Operating expenses (including income taxes) 240,000 220,000 Net income $70,000 $60,000 Additional information: Cash from operating activities $82,000 $56,000 Cash used for capital expenditures $45,000 $38,000 Dividends paid $20,000 $15,000 Average number of shares outstanding 33,000.00 30,000.00 Instructions Compute these values and ratios for 2011 and 2012. Answers must also include formulas and calculations. Answers (a) Earnings per share. 2011 2012 Net Income - Dividends on Preferred Stock / Average Outstanding Shares ($60,000 - $15,000) / 30,000 = $1.5 $770,000 - $20,000 / 33,000 = $1.51515152 (b) Working capital. 2011 2012 Current Assets - Current