Option #1: Profitability Analysis Exercises and Problems
Do the assigned problems using Summer Peebles, Inc.’s condensed 2014 financial data below:
Assets
Current Assets
$250,000.00
Noncurrent Assets
$1,750,000.00
Total Assets
$2,000,000.00
Liabilities and Equity
Current Liabilities
$200,000.00
Noncurrent Liabilities (8% Bonds)
$675,000.00
Common Stockholders’ Equity
$1,125,000.00
Total Liabilities and Equity
$2,000,000.00
Additional Information:
Net income for 2014 is $157,500.
Income tax rate is 50%.
Amounts for total assets and shareholders’ equity are the same for 2013 and 2014.
All assets and current liabilities are considered to be operating.
