Behavior Modification 11th Edition Martin Test Bank 2.

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TEST BANK b




To Accompany
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Financial Statement Analysis and Security Valuation
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5th edition
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By

StephenbPenman




(Solutions at end of Test Bank)
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, TEST NUMBER 1
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Time allowed: 90 Minutes
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Total Points: 40
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Question 1 (32 Points)
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, The following are partial financial statements for an industrial firm that
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you are required to analyze and value. All amounts are in millions of dollars.
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Income Statement for Fiscal Year 2004
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Sales 2,000
Cost of goods sold 1,500
Gross margin 500
Selling and general expenses 300
Operating income 200
Interest income 5
205
Interest expense 21
Restructuring charge 14
Income before tax 170
Income taxes 60
Net income J




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, Balance Sheet, Year 2004
Assets Liabilities and Equity

2004 2003 2004 2003

Operating assets A 910 Operating liabilities 113 C
Debt securities 110 B Financing debt 360 340
Perferred stock 100 100
Common equity E 500
1,146 1,000 D 1,000




Statement of Common Shareholders Equity, Year 2004

Balance, end of 2003 F

Net income G
Common dividends (30)
Preferred dividends H
Unrealized loss on debt securities held (5)
Foreign currency translation gain 4

Balance, end of 2004 I
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