Solution-Compute the following ratios for 2014

Compute the following ratios for 2014

Reference no: EM13496090

The comparative statements of Osborne Company are presented here.

OSBORNE COMPANY Income Statements For the Years Ended December 31
	2014	2013
Net sales	$1,896,390	$1,756,350
Cost of goods sold	1,064,390	1,011,850
Gross profit	832,000	744,500
Selling and administrative expenses	505,850	484,850
Income from operations	326,150	259,650
Other expenses and losses
Interest expense	23,785	21,785
Income before income taxes	302,365	237,865
Income tax expense	93,785	74,785
Net income	$ 208,580	$ 163,080

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	123,650	108,650
Inventory	127,785	117,285
Total current assets	385,535	340,135
Plant assets (net)	662,341	533,641
Total assets	$1,047,876	$873,776
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable	$ 165,850	$151,250
Income taxes payable	45,285	43,785
Total current liabilities	211,135	195,035
Bonds payable	233,341	213,341
Total liabilities	444,476	408,376
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	$1,047,876	$873,776

All sales were on account. Net cash provided by operating activities for 2014 was $241,920. Capital expenditures were $136,400, and cash dividends were $60,580.

Compute the following ratios for 2014.

(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: EM13496090

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Compute the following ratios for 2014

Reference no: EM13496090

Reference no: EM13496090

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