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Devlin Company Devlin Company
Statement of Financial Position
as

question 52

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Devlin Company Devlin Company
Statement of Financial Position
as of May 31
(in thousands)
 Assets year 7year 6 Current assets  Cash $45$38 Trading securities 3020 Accounts receivable (net)  6848 Inventories 9080 Prepaid expenses 2230 Total current assets $255$216 Investments, at equity 3830 Property, plant, and equipment (net)  375400 Intangible assets (net)  8045 Total assets $748$691 Liabilities and shareholders’ equity  Current liabilities  Notes payable $35$18 Accounts payable 7042 Accrued expenses 54 Income taxes pavable 1516 Total current liabilities 12580 Long-term debt 3535 Deferred taxes 32 Total liabilities $163$117 Shareholders’ equity  Preferred stock, 6%,$100 par value, cumulative 150150 Common stock, $10 par value 225195 Additional paid-in capital-common stock 114100 Retained earmings 96129 Total shareholders’ equity $585$574 Total liabilities and shareholders’ equity $748$691\begin{array}{lll}\text { Assets }&\text {year 7}&\text {year 6}\\\text { Current assets } & & \\\text { Cash } & \$ 45 & \$ 38 \\\text { Trading securities } & 30 & 20 \\\text { Accounts receivable (net) } & 68 & 48 \\\text { Inventories } & 90 & 80\\\text { Prepaid expenses }&22&30\\\text { Total current assets } & \$ 255 & \$ 216 \\\text { Investments, at equity } & 38 & 30 \\\text { Property, plant, and equipment (net) } & 375 & 400 \\\text { Intangible assets (net) } & 80 & 45\\\text { Total assets } &\$ 748 &\$ 691 \\\text { Liabilities and shareholders' equity } & & \\\text { Current liabilities } & \\\text { Notes payable } &\$ 35 & \$ 18 \\\text { Accounts payable } &70 & 42 \\\text { Accrued expenses } & 5 & 4 \\\text { Income taxes pavable } & 15 & 16\\\text { Total current liabilities } & 125 & 80 \\\text { Long-term debt } & 35 & 35 \\\text { Deferred taxes } & 3 & 2\\\text { Total liabilities } &\$ 163 &\$ 117 \\\text { Shareholders' equity } & \\\text { Preferred stock, } 6 \%, \$ 100 \text { par value, cumulative } & 150 & 150\\\text { Common stock, } \$ 10 \text { par value } & 225 & 195 \\\text { Additional paid-in capital-common stock } & 114 & 100 \\\text { Retained earmings } & 96 & 129 \\\text { Total shareholders' equity }&\$585&\$574\\\text { Total liabilities and shareholders' equity }&\$748&\$691\end{array}
Devlin Company
Income Statement
For the year ended May 31
(in thousands)
 Year 7 Year 6 Net sales $480$460 Costs and expenses  Cost of goods sold 330315 Selling, general, and administrative 5251 Interest expense 89 Income before taxes $90$85 Income taxes 3634 Net income $54$51\begin{array}{lll}&\text { Year } 7&\text { Year } 6\\\text { Net sales } & \$ 480 & \$ 460 \\\text { Costs and expenses } & & \\\text { Cost of goods sold } & 330 & 315 \\\text { Selling, general, and administrative } & 52 & 51\\\text { Interest expense }&8&9\\\text { Income before taxes } & \$ 90 & \$ 85 \\\text { Income taxes } & 36 & 34\\\text { Net income }&\$54&\$51\end{array} (CMA adapted, Jun 97 #14) Refer to the Devlin Company example.Assuming there are no preferred stock dividends in arrears, Devlin Company's return on common shareholders' equity for the year ended May 31, Year 7, was


Definitions:

Work Environment

The physical and psychological conditions under which employees operate, encompassing aspects like office layout, safety standards, company culture, and interpersonal relationships.

Differentiation

The difference between the highest and lowest interest types. Well-differentiated interests predict more stable occupational choices.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, influencing behaviors, thoughts, and emotions.

Socioeconomic Status

A measure of an individual's or family's economic and social position in relation to others, based on income, education, and occupation.

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