The comparative statements of Larker Tool Company are presented below.
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Larker Tool Company Income Statement For the Years Ended December 31
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2014
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2013
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Net sales
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$1,818,500
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$1,750,500
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Cost of goods sold
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1,011,500
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996,000
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Gross profit
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807,000
|
754,500
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Selling and administrative expense
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516,000
|
479,000
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Income from operations Other expenses and losses
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291,000
|
275,500
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Interest expense
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15,000
|
14,000
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Income before income taxes
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276,000
|
261,500
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Income tax expense
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84,000
|
77,000
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Net income
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$ 192,000
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$ 184,500
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Larker Tool Company Balance Sheets December 31
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Assets
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2014
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2013
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Current assets Cash
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$ 60,100
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$ 64,200
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Short-term investments
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69,000
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50,000
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Accounts receivable (net)
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105,750
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102,800
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Inventory
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110,950
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115,500
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Total current assets
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345,800
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332,500
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Plant assets (net)
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600,300
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520,300
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Total assets
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$946,100
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$852,800
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Liabilities and Stockholders' Equity
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|
|
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Current liabilities Accounts payable
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$160,000
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$145,400
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Income taxes payable
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43,500
|
42,000
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Total current liabilities
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203,500
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187,400
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Bonds payable
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200,000
|
200,000
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Total liabilities
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403,500
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387,400
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Stockholders' equity Common stock ($5 par)
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300,000
|
300,000
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Retained earnings
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242,600
|
165,400
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Total stockholders' equity
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542,600
|
465,400
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Total liabilities and stockholders' equity
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$946,100
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$852,800
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All sales were on account.
Instructions
Compute the following ratios for 2014. (Weighted-average common shares in 2014 were 60,000.)
(a) Earnings per share.
(b) Return on common stockholders' equity.
(c) Return on assets.
(d) Current.
(e) Acid-test.
(f) Receivables turnover.
(g) Inventory turnover.
(h) Times interest earned.
(i) Asset turnover.
(j) Debt to total assets.