The comparative statements of Osborne Company are presented here. OSBORNE COMPANY Income Statements For the Years Ended December 31 2014 2013 Net sales $1,894,859 $1,754,819 Cost of goods sold 1,062,859 1,010,319 Gross profit 832,000 744,500 Selling and administrative expenses 504,319 483,319 Income from operations 327,681 261,181 Other expenses and losses Interest expense 23,427 21,427 Income before income taxes 304,254 239,754 Income tax expense 93,427 74,427 Net income $ 210,827 $ 165,327 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 122,119 107,119 Inventory 127,427 116,927 Total current assets 383,646 338,246 Plant assets (net) 663,469 534,769 Total assets $1,047,115 $873,015 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 164,319 $149,719 Income taxes payable 44,927 43,427 Total current liabilities 209,246 193,146 Bonds payable 234,469 214,469 Total liabilities 443,715 407,615 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 $1,047,115 $873,015 All sales were on account. Net cash provided by operating activities for 2014 was $247,890. Capital expenditures were $136,630, and cash dividends were $62,827. 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 :1 (e) Accounts receivable turnover times (f) Average collection period days (g) Inventory turnover times (h) Days in inventory days (i) Times interest earned times (j) Asset turnover times (k) Debt to assets % (l) Current cash debt coverage times (m) Cash debt coverage times (n) Free cash flow $ SHOW SOLUTION