Compute the accounts receivable turnover times

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Reference no: EM131796562

Assignment

OSBORNE COMPANY
Income Statements
For the Years Ended December 31


2014

2013

Net sales

$1,896,280

$1,756,240

Cost of goods sold

1,064,280

1,011,740

Gross profit

832,000

744,500

Selling and administrative expenses

505,740

484,740

Income from operations

326,260

259,760

Other expenses and losses



   Interest expense

23,764

21,764

Income before income taxes

302,496

237,996

Income tax expense

93,764

74,764

Net income

$ 208,732

$ 163,232

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

123,540

108,540

   Inventory

127,764

117,264

     Total current assets

385,404

340,004

Plant assets (net)

659,814

531,114

Total assets

$1,045,218

$871,118

Liabilities and Stockholders' Equity



Current liabilities



   Accounts payable

$ 165,740

$151,140

   Income taxes payable

45,264

43,764

     Total current liabilities

211,004

194,904

Bonds payable

230,814

210,814

     Total liabilities

441,818

405,718

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

$1,045,218

$871,118

All sales were on account. Net cash provided by operating activities for 2014 was $238,520. Capital expenditures were $136,680, and cash dividends were $60,732.

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 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.

Reference no: EM131796562

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