FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Southeast Systems has the following balance sheet and the income statement. The company had 10 million shares of common stock outstanding and its market price of the common stock was $78 at the end of 2014. Make sure the unit is in million dollars.

 (unit: $ in millions)

Southeast Systems

Balance Sheets

 

2013

2014

 

2013

2014

Cash

$50

$100

Accounts payable

$450

$500

Accounts receivable

600

700

Notes payable

300

400

Inventory

500

550

Long-term debt

650

650

Net fixed assets

1,000

1,000

Common equity

300

300

 

 

 

Retained earnings

450

500

Total Assets

$2,150

$2,350

Total Liabilities & Owner’s Equity

$2,150

$2,350

 

Income Statement

 

2014

Sales

$2,370

Cost of goods sold

2,070

Depreciation

200

EBIT

100

Interest expenses

20

Taxable income

80

Taxes

28

Net income

$52

Dividends

$2

 

(1) What is the common-size value of accounts receivable for 2014?

(2) What is the common-size value of cost of goods sold for 2014?

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