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Phelps,Inc

question 92

Essay

Phelps,Inc.,had assets of $67,646 and liabilities of $15,466 at the close of 2008 with 10,718 shares of outstanding common shares.Net income for 2008 was $7,829.At the end of 2009,assets were $79,571 and liabilities were $18,551,and the company had 10,771 shares of outstanding stock.Net income for 2009 was $9,993.
a)Calculate EPS for 2009.
b)Calculate ROE for 2009.


Definitions:

Variable Cost Per Unit

The cost that varies with each unit of production or service provided.

Net 30 Credit Policy

A payment term indicating that the payment for goods or services is due 30 days after the invoice date, often used in business-to-business transactions.

Monthly Interest Rate

The interest rate applied to a loan or investment for one month, often used to calculate the monthly interest payments or earnings.

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