| WORKSHEET FOR EASTLAND PRODUCTS, INC. |
| BALANCE SHEET | | Year 1 | Year 2 |
| ASSETS |
| Current assets | | $40,000,000 | $60,000,000 |
| Fixed assets, net | | | 110,000,000 |
| | | - | - |
| Total Assets | | $40,000,000 |
| | | = | = |
| LIABILITIES AND EQUITY |
| Current liabilities | | $30,000,000 | $20,000,000 |
| Long-term debt | | 40,000,000 | 40,000,000 |
| Common stock ($1 par) | | 5,000,000 |
| Surplus capital (CCEP) | | | 35,000,000 |
| Retained earnings | | 55,000,000 | 55,000,000 |
| | | - | - |
| Total liabilities and equity | | | $150,000,000 |
| | | = | = |
| INCOME STATEMENT |
| Sales | | $120,000,000 |
| Cost of sales | | 80,000,000 |
| | | - |
| Operating income (EBIT) |
| Interest | | 5,000,000 |
| | | - |
| Taxable income (EBT) | | (5,000,000) |
| Taxes (40%) | | (2,000,000) |
| | | - |
| Net income (EAT) | | ($3,000,000) |
| | | = |
| Total dividends | | $10,000,000 |
| Market price per share | | $32 |
| Common shares issued | | 5,000,000 |
| Earnings per share, year 1 |
| Price-earnings ratio, year 1 |
| Book value per share, year 1 |
| Market to book ratio, year 1 |
| Retained earnings added |
| New common shares issued | | 1,000,000 |
| Net proceeds from new shares | | $30,000,000 |
| Decrease in current liabilities | | $10,000,000 |
| Increase in current assets | | $20,000,000 |
m.wucoud
cfm0318p.xls
