Zoeckler Mowing Landscaping Year-End 2012 Balance Sheet List
Zoeckler Mowing Landscapings Year End 2012 Balance Sheet Lists Curr
Zoeckler Mowing & Landscaping's year-end 2012 balance sheet lists current assets of $436,500, fixed assets of $551,500, current liabilities of $417,900, and long-term debt of $317,100. Calculate Zoeckler's total stockholders' equity. The fitness studio, Inc.'s, 2012 income statement lists the following income and expenses: EBIT = $782,000, interest expense = $270,000, and taxes = $179,200. The firm has no preferred stock outstanding and 100,000 shares of common stock outstanding. Calculate the 2012 earnings per share. (Round your answer to 2 decimal places.)
Paper For Above instruction
Introduction
This paper aims to analyze two financial aspects of Zoeckler Mowing & Landscaping and The Fitness Studio, Inc., based on provided financial statements. The first task involves calculating Zoeckler's total stockholders' equity from given balance sheet data, while the second calculates the earnings per share (EPS) for The Fitness Studio, Inc., using income statement figures. These financial metrics are essential for understanding the company's financial health and profitability, respectively. Accurate calculation and interpretation of these figures provide vital insights for investors, management, and stakeholders.
Calculating Zoeckler Mowing & Landscaping's Total Stockholders' Equity
The balance sheet provides key components necessary for determining total stockholders' equity. The fundamental accounting equation is:
\[ \text{Assets} = \text{Liabilities} + \text{Stockholders' Equity} \]
Where total assets are the sum of current and fixed assets, and total liabilities comprise current liabilities and long-term debt.
Given Data:
- Current Assets = $436,500
- Fixed Assets = $551,500
- Current Liabilities = $417,900
- Long-term Debt = $317,100
Calculations:
1. Total Assets:
\[
\text{Total Assets} = 436,500 + 551,500 = 988,000
\]
2. Total Liabilities:
\[
\text{Total Liabilities} = 417,900 + 317,100 = 735,000
\]
3. Stockholders' Equity:
\[
\text{Equity} = \text{Total Assets} - \text{Total Liabilities} = 988,000 - 735,000 = 253,000
\]
Thus, Zoeckler's total stockholders' equity at year-end 2012 is $253,000.
Calculating Earnings Per Share (EPS) for The Fitness Studio, Inc.
EPS measures the portion of a company's profit attributable to each share of common stock, providing an indicator of profitability on a per-share basis. The formula is:
\[
\text{EPS} = \frac{\text{Net Income}}{\text{Number of Shares Outstanding}}
\]
To find net income:
\[
\text{Net Income} = \text{EBIT} - \text{Interest Expense} - \text{Taxes}
\]
Given Data:
- EBIT = $782,000
- Interest Expense = $270,000
- Taxes = $179,200
- Shares Outstanding = 100,000
Calculations:
1. Earnings Before Tax (EBT):
\[
\text{EBT} = 782,000 - 270,000 = 512,000
\]
2. Net Income:
\[
\text{Net Income} = 512,000 - 179,200 = 332,800
\]
3. Earnings Per Share:
\[
\text{EPS} = \frac{332,800}{100,000} = 3.33
\]
Therefore, the EPS for The Fitness Studio, Inc., in 2012, is $3.33 (rounded to two decimal places).
Conclusion
The analysis demonstrates that Zoeckler Mowing & Landscaping had a total equity of $253,000 at the end of 2012, reflecting its net worth after liabilities. For The Fitness Studio, Inc., the earnings per share in 2012 were $3.33, indicating the company's profitability per share of common stock. These financial metrics are crucial for assessing company performance and guiding investment decisions. Accurate financial analysis relies on thorough understanding of balance sheet components and income statement data, as illustrated in this analysis.
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