Figure 16-2

Figure 16-2.Financial statements for Grange Company appear below:
Dividends during 2014 totaled $127,000, of which $5,000 were preferred dividends.The market price of a share of common stock on December 31, 2014, was $100.
-Smith Inc. is a wholesaler of snow skiing gear. During 2014, Smith expanded its retail business by adding over 50 shops. The following information is obtained from the comparative financial statements included in the company's 2014 annual report.
$\begin{array}{lrr}&\text { Dec. } 31,2014&\text { Dec. } 31,2013\\\text { Total liabilities } & \$ 26,000,000 & \$ 18,000,000 \\\text { Total stockholders' equity } & 34,000,000 & 38,000,000\\\\\text { FOR THE FISCAL YEARS ENDED }&\text { Dec. } 31\\&2014&2013\\\text { Depreciation expense } & \$ 2,000,000 & \$ 6,000,000 \\\text { Interest expense } & 3,400,000 & 3,200,000 \\\text { Income tax expense } & 12,600,000 & 18,100,000 \\\text { Net income } & 6,000,000 & 15,000,000 \\\text { Net cash provided by operations } & 41,000,000 & (400,000) \\\text { Total dividends paid } & 2,000,000 & 12,000,000 \\\text { Cash used to purchase plant assets } & 32,000,000 & 18,000,000 \\\text { Payments on long-term debt } & 1,600,000 & 1,800,000\end{array}$