Compute the ratios

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Reference no: EM131715549

 

The comparative statements of Osborne Company are presented here.

OSBORNE COMPANY
Income Statements
For the Years Ended December 31

2014

2013

 

 

Net sales

$1,899,482

$1,759,442

 

Cost of goods sold

1,067,482

1,014,942

 

Gross profit

832,000

744,500

 

Selling and administrative expenses

508,942

487,942

 

Income from operations

323,058

256,558

 

Other expenses and losses

   

 

   Interest expense

23,720

21,720

 

Income before income taxes

299,338

234,838

 

Income tax expense

93,720

74,720

 

Net income

mce_markernbsp;205,618

mce_markernbsp;160,118

 

 

OSBORNE COMPANY
Balance Sheets
December 31

Assets

2014

2013

 

Current assets

   

 

   Cash

mce_markernbsp;60,100

mce_markernbsp;64,200

 

   Debt investments (short-term)

74,000

50,000

 

   Accounts receivable

126,742

111,742

 

   Inventory

127,720

117,220

 

     Total current assets

388,562

343,162

 

Plant assets (net)

662,072

533,372

 

Total assets

$1,050,634

$876,534

 

Liabilities and Stockholders' Equity

   

 

Current liabilities

   

 

   Accounts payable

mce_markernbsp;168,942

$154,342

 

   Income taxes payable

45,220

43,720

 

     Total current liabilities

214,162

198,062

 

Bonds payable

233,072

213,072

 

     Total liabilities

447,234

411,134

 

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

$1,050,634

$876,534

 

All sales were on account. Net cash provided by operating activities for 2014 was $245,880. Capital expenditures were $136,060, and cash dividends were $57,618.

Compute the following ratios for 2014. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)

(a) Earnings per share mce_markernbsp;
(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 $

Reference no: EM131715549

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