The comparative statements of Osborne Company are presented here.
|
OSBORNE COMPANY
Income Statements
For the Years Ended December 31
|
|
|
2014
|
|
2013
|
| Net sales |
|
$1,895,657
|
|
$1,755,617
|
| Cost of goods sold |
|
1,063,657
|
|
1,011,117
|
| Gross profit |
|
832,000
|
|
744,500
|
| Selling and administrative expenses |
|
505,117
|
|
484,117
|
| Income from operations |
|
326,883
|
|
260,383
|
| Other expenses and losses |
|
|
|
|
| Interest expense |
|
23,442
|
|
21,442
|
| Income before income taxes |
|
303,441
|
|
238,941
|
| Income tax expense |
|
93,442
|
|
74,442
|
| Net income |
|
$ 209,999
|
|
$ 164,499
|
|
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 |
|
122,917
|
|
107,917
|
| Inventory |
|
127,442
|
|
116,942
|
| Total current assets |
|
384,459
|
|
339,059
|
| Plant assets (net) |
|
663,395
|
|
534,695
|
| Total assets |
|
$1,047,854
|
|
$873,754
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
| Current liabilities |
|
|
|
|
| Accounts payable |
|
$ 165,117
|
|
$150,517
|
| Income taxes payable |
|
44,942
|
|
43,442
|
| Total current liabilities |
|
210,059
|
|
193,959
|
| Bonds payable |
|
234,395
|
|
214,395
|
| Total liabilities |
|
444,454
|
|
408,354
|
| 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 |
|
$1,047,854
|
|
$873,754
|
All sales were on account. Net cash provided by operating activities for 2014 was $236,780. Capital expenditures were $136,330, and cash dividends were $61,999.
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 |
|