a)

b)

a)

b)
c)
tax rate 40%
net profit before tax 361,000 net profit after tax 216,600
preferred stock 52,000 common stock 200,000 shares

EPS 1.08
DPS 120,000 96,600 --> retained earnings

Multistep comparative income statement

Dayton Products, Inc
Income Statement
Dec-15 Dec-14
Sales 178,909 187,510
Cost of Goods Sold 109,701 111,631
Gross Profit 69,208 75,879
Selling,general and admin exp. 12,356 12,900
Depreciation and amortization 12,103 7,944
Total Operating Expense 24,459 20,844
Operating Profit 44,749 55,035
Other Income 3,147 3,323
EBIT 47,896 58,358
Interest Expense 398 293
Earning Before Tax 47,498 58,065
Tax Expense 16,778 22,033
Other Tax Expense 33,572 33,377
Net Income -2,852 2,655

Dayton Products, Inc

Balance Sheet

Asset Liabilities & Equity

Current Asset Dec-15 Dec-14 Current Liabilities
Cash 7,229 6,547 Account Payable
Account Receivable 21,163 19,549 Short-term Debt Payable
Inventories 8,068 7,904 Other current liabilities
Other Current Assets 1,831 1,681 Total Current Liabilities
Total Current Asset 38,291 35,681 Non Current Liabilties
Non Current Asset Long-term debt payable
PP&E 204,960 187,519 Deferred income taxes
Accum. Depre & Deplet 110,020 97,917 Other non current liabilities
Other non current Assets 19,413 17,891 Total Non Current Liabilities
Total NonCurrent Asset 114,353 107,493 Total Liabilities
Equity
Retained Earning
Common Share outstanding
 Total Equity
Total Asset 152,644 143,174 Total Liabilities + Equity
Dec-15 Dec-14
13,792 22,862
4,093 3,703
15,290 3,549
33,175 30,114

6,655 7,099
16,484 16,359
21,733 16,441
44,872 39,899
78,047 70,013

74,597 73,161
8,978 15,300
 83,575 88,461
161,622 158,474
8,978 15,300