Question

also calculate the book value per common share.

Answer 1

Balance sheet
Assets	Liabilities and stockholders' equity
Current assets			Current liabilities
Cash		10000	Accounts payable	35000
Marketable securities		20000	Notes payable	33000
Accounts receivable	48000		Total current liabilities	68000
Less: Allowance for bad debts	6000	42000	Long term liabilities
Inventory		66000	Bonds payable	136000
Total current assets		138000	Total liabilities	204000
Other Assets :
Investments		20000	Stockholders' equity
Capital assets:			Preferred stock	50000
Plant and equipment	680000		Common stock	188000
Less: Accumulated amortization	300000		Retained earnings	96000
Net plant and equipment		380000	Total stockholders' equity	334000
Total assets		538000	Total liabilities and stockholders' equity	538000

Book value per common share = ( Total stockholders' equity - Preferred stock ) / Shares of common stock outstanding = ( 334000 - 50000 ) / 100000 =

2.84