BRIEF EXERCISE 2-2
GEORGES COMPANY
Partial Balance Sheet
Current assets
Cash …………………………………………………………………………….. $10,400
Short-term investments …………………………………………………. 8,200
Accounts receivable ……………………………………………………… 14,000
Supplies ……………………………………………………………………….. 3,800
Prepaid insurance …………………………………………………………. 2,600
Total current assets ………………………………………………… $39,000
Order based on liquidity.
BRIEF EXERCISE 2-3
Earnings per share =
Net income–Preferred stock dividends
Average common shares outstanding
=
$220 million – $0
333 million shares
= $.66 per share
EPS is a required disclosure on all income statements.
BRIEF EXERCISE 2-4
ICS Issued new shares of common stock
DRE Paid a cash dividend
IRE Reported net income of $75,000
DRE Reported net loss of $20,000
BRIEF EXERCISE 2-9
(a) Relevant.
