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Compute accounts receivable turnover ration

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Reference no: EM131820315

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

Reference no: EM131820315

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