Question: Problem 13-2A The comparative statements of Osborne


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Jun 03, 2016. Question: Problem 13-2A The comparative statements of Osborne Company are presented here. OSBORNE COMPANY Income Statements For the Years Ended December 31 2014 2013 Net sales $1,894,421 $1,754,381 Cost of goods sold 1,062,421 1,009,881 Gross profit 832,000 744,500 Selling and administrative expenses 503,881 482,881 Income from operations 328,119 261,619 Other expenses and losses Interest expense 23,969 21,969 Income before income taxes 304,150 239,650 Income tax expense 93,969 74,969 Net income $ 210,181 $ 164,681 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 121,681 106,681 Inventory 127,969 117,469 Total current assets 383,750 338,350 Plant assets (net) 662,930 534,230 Total assets $1,046,680 $872,580 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 163,881 $149,281 Income taxes payable 45,469 43,969 Total current liabilities 209,350 193,250 Bonds payable 233,930 213,930 Total liabilities 443,280 407,180 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 $1,046,680 $872,580 All sales were on account. Net cash provided by operating activities for 2014 was $222,280. Capital expenditures were $136,710, and cash dividends were $62,181. 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 $ iheartme
posted a question · Jun 03, 2016 at 2:47pm

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