Question 5 The comparative statements of Osborne Company are presented here.
OSBORNE COMPANY
Income Statements
For the Years Ended December 31 |
| 2014 |
2013 |
| Net sales |
$1,897,831 |
$1,757,791 |
| Cost of goods sold |
1,065,831 |
1,013,291 |
| Gross profit |
832,000 |
744,500 |
| Selling and administrative expenses |
507,291 |
486,291 |
| Income from operations |
324,709 |
258,209 |
| Other expenses and losses |
| Interest expense |
23,232 |
21,232 |
| Income before income taxes |
301,477 |
236,977 |
| Income tax expense |
93,232 |
74,232 |
| Net income |
$208,245 |
$162,745 |
OSBORNE COMPANY
Balance Sheets
December 31 |
| Assets |
2014 |
2013 |
| Current assets |
| Cash |
$60,100 |
$64,200 |
| Debt investments (short-term) |
74,000 |
50,000 |
| Accounts receivable |
125,091 |
110,091 |
| Inventory |
127,232 |
116,732 |
| Total current assets |
386,423 |
341,023 |
| Plant assets (net) |
661,676 |
532,976 |
| Total assets |
$1,048,099 |
$873,999 |
| Liabilities and Stockholders' Equity |
| Current liabilities |
| Accounts payable |
$167,291 |
$152,691 |
| Income taxes payable |
44,732 |
43,232 |
| Total current liabilities |
212,023 |
195,923 |
| Bonds payable |
232,676 |
212,676 |
| Total liabilities |
444,699 |
408,599 |
| Stockholders' equity |
| Common stock ($5 par) |
290,000 |
300,000 |
| Retained earnings |
313,400 |
165,400 |
| Total stockholders' equity |
603,400 |
465,400 |
| Total liabilities and stockholders' equity |
$1,048,099 |
$873,999 |
All sales were on account. Net cash provided by operating activities for 2014 was $240,330. Capital expenditures were $136,440, and cash dividends were $60,245.
Compute the following ratios for 2014. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)
(a) Earnings per share
(b) Return on common stockholders' equity
(c) Return on assets
(d) Current ratio
(e) Accounts receivable turnover
(f) Average collection period
(g) Inventory turnover
(h) Days in inventory
(i) Times interest earned
(j) Asset turnover
(k) Debt to assets
(l) Current cash debt coverage
(m) Cash debt coverage
(n) Free cash flow