Oriole Medical manufactures hospital beds and other institutional furniture. The company’s comparative balance sheet and income statement for 2015 and 2016 follow.
Oriole Medical | ||
Comparative Balance Sheet | ||
As of December 31 | ||
2016 | 2015 | |
Assets | ||
Current assets | ||
Cash | $308,000 | $417,450 |
Accounts receivable, net | 1,065,800 | 776,450 |
Inventory | 726,000 | 681,050 |
Other current assets | 382,000 | 247,050 |
Total current assets | 2,481,800 | 2,122,000 |
Property, plant, & equipment, net | 9,987,505 | 8,418,295 |
Total assets | $12,469,305 | $10,540,295 |
Liabilities and Stockholders’ Equity | ||
Current liabilities | $3,164,000 | $2,846,000 |
Long-term debt | 3,702,600 | 3,892,700 |
Total liabilities | 6,866,600 | 6,738,700 |
Preferred stock, $5 par value | 50,600 | 50,600 |
Common stock, $0.25 par value | 179,000 | 103,900 |
Retained earnings | 5,373,105 | 3,647,095 |
Total stockholders’ equity | 5,602,705 | 3,801,595 |
Total liabilities and stockholders’ equity | $12,469,305 | $10,540,295 |
Oriole Medical | ||
Comparative Income Statement and Statement of Retained Earnings | ||
For the Year | ||
2016 | 2015 | |
Sales revenue (all on account) | $10,450,000 | $9,614,000 |
Cost of goods sold | 4,168,000 | 5,298,800 |
Gross profit | 6,282,000 | 4,315,200 |
Operating expenses | 2,840,200 | 2,634,150 |
Net operating income | 3,441,800 | 1,681,050 |
Interest expense | 351,000 | 308,700 |
Net income before taxes | 3,090,800 | 1,372,350 |
Income taxes (30%) | 927,240 | 411,705 |
Net income | $2,163,560 | $960,645 |
Dividends paid | ||
Preferred dividends | 29,550 | 29,550 |
Common dividends | 408,000 | 460,000 |
Total dividends paid | 437,550 | 489,550 |
Net income retained | 1,726,010 | 471,095 |
Retained earnings, beginning of year | 3,647,095 | 3,176,000 |
Retained earnings, end of year | $5,373,105 | $3,647,095 |
Calculate the earnings per share (average of 412,000 shares outstanding for the year) for 2016.