| Investing Lesson 3 |
| Quiz: How to Analyze a Balance Sheet |
For $1,000,000...
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Ruby's Coffee Roasters |
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| Assets | ||
| Current Assets |
March 3, 2001 |
February 26, 2000 |
| Cash and Cash Equivalents | $39,183,329 | $21,309,139 |
| Short Term Investments | $389,109,377 | $193,311,150 |
| Net Receivables | $110,500,00 | $96,500,00 |
| Inventory | $41,099,283 | $25,100,590 |
| Other Current Assets | $7,109,000 | $4,500,100 |
| Total Current Assets | $476,500,989 | $244,220,979 |
| Long Term Assets | ||
| Long Term Investments | $10,450,000 | $8,200,000 |
| Property Plant and Equipment | $74,500,000 | $72,000,000 |
| Goodwill | N/A | N/A |
| Intangible Assets | $1,500,000 | $1,500,000 |
| Accumulated Amortization | N/A | N/A |
| Other Assets | $4,029,500 | $2,502,000 |
| Deferred Long Term Asset Charges | N/A | N/A |
| Total Assets | $566,980,489 | $328,422,979 |
| Current Liabilities | ||
| Accounts Payable | $144,110,000 | $136,787,000 |
| Short Term and Long Term Debt | N/A | $39,179,000 |
| Other Current Liabilities | N/A | N/A |
| Total Current Liabilities | $144,110,000 | $175,966,000 |
| Long Term Debt | $11,402,000 | $8,750,000 |
| Other Liabilities | $9,490,000 | $9,430,000 |
| Deferred Long Term Liability Charges | N/A | N/A |
| Minority Interest | N/A | N/A |
| Negative Goodwill | N/A | N/A |
| Total Liabilities | $165,002,000 | $194,146,000 |
| Stockholders' Equity | ||
| Misc Stock Option Warrants | N/A | N/A |
| Redeemable Preferred Stock | N/A | N/A |
| Preferred Stock | N/A | N/A |
| Common Stock | $14,200,000 | $14,200,000 |
| Retained Earnings | $125,817,154 | $108,390,481 |
| Treasury Stock | ($37,633,000) | ($32,115,926) |
| Capital Surplus | $24,500,000 | $19,200,000 |
| Other Stockholders' Equity | $100,000 | $100,000 |
| Total Stockholders' Equity | $401,978,489 | $134,276,979 |
| Net Tangible Assets | $400,478,489 | $132,776,979 |
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An acquisition company bought the above business for $3,498,029,210 in stock and cash. It amortized the goodwill charges over the maximum allowable time period. The acquisition company had 147,209,398 shares outstanding and earnings of $240,300,918.29 the following year. After goodwill charges, how much will the company's earnings per share be? |
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| a) $0.9720 per share | b) $1.11 per share |
| c) $1.1509 per share | d) $1.5023 per share |
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