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 |
|
$![pixel.gif](https://edugen.wileyplus.com/edugen/art2/common/pixel.gif)
|
|
(b) |
|
Return on common stockholders' equity |
|
![pixel.gif](https://edugen.wileyplus.com/edugen/art2/common/pixel.gif)
|
% |
(c) |
|
Return on assets |
|
![pixel.gif](https://edugen.wileyplus.com/edugen/art2/common/pixel.gif)
|
% |
(d) |
|
Current ratio |
|
![pixel.gif](https://edugen.wileyplus.com/edugen/art2/common/pixel.gif)
|
:1 |
(e) |
|
Accounts receivable turnover |
|
![pixel.gif](https://edugen.wileyplus.com/edugen/art2/common/pixel.gif)
|
times |
(f) |
|
Average collection period |
|
![pixel.gif](https://edugen.wileyplus.com/edugen/art2/common/pixel.gif)
|
days |
(g) |
|
Inventory turnover |
|
![pixel.gif](https://edugen.wileyplus.com/edugen/art2/common/pixel.gif)
|
times |
(h) |
|
Days in inventory |
|
![pixel.gif](https://edugen.wileyplus.com/edugen/art2/common/pixel.gif)
|
days |
(i) |
|
Times interest earned |
|
![pixel.gif](https://edugen.wileyplus.com/edugen/art2/common/pixel.gif)
|
times |
(j) |
|
Asset turnover |
|
![pixel.gif](https://edugen.wileyplus.com/edugen/art2/common/pixel.gif)
|
times |
(k) |
|
Debt to assets |
|
![pixel.gif](https://edugen.wileyplus.com/edugen/art2/common/pixel.gif)
|
% |
(l) |
|
Current cash debt coverage |
|
![pixel.gif](https://edugen.wileyplus.com/edugen/art2/common/pixel.gif)
|
times |
(m) |
|
Cash debt coverage |
|
![pixel.gif](https://edugen.wileyplus.com/edugen/art2/common/pixel.gif)
|
times |
(n) |
|
Free cash flow |
|