Problem 13-2A
The comparative statements of Osborne Company are presented here.
|
OSBORNE COMPANY |
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|
2014 |
2013 |
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|
Net sales |
$1,899,164 |
$1,759,124 |
||
|
Cost of goods sold |
1,067,164 |
1,014,624 |
||
|
Gross profit |
832,000 |
744,500 |
||
|
Selling and administrative expenses |
508,624 |
487,624 |
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|
Income from operations |
323,376 |
256,876 |
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|
Other expenses and losses |
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|
Interest expense |
23,160 |
21,160 |
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|
Income before income taxes |
300,216 |
235,716 |
||
|
Income tax expense |
93,160 |
74,160 |
||
|
Net income |
$ 207,056 |
$ 161,556 |
|
OSBORNE COMPANY |
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|
Assets |
2014 |
2013 |
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|
Current assets |
||||
|
Cash |
$ 60,100 |
$ 64,200 |
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|
Debt investments (short-term) |
74,000 |
50,000 |
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|
Accounts receivable |
126,424 |
111,424 |
||
|
Inventory |
127,160 |
116,660 |
||
|
Total current assets |
387,684 |
342,284 |
||
|
Plant assets (net) |
661,882 |
533,182 |
||
|
Total assets |
$1,049,566 |
$875,466 |
||
|
Liabilities and Stockholders’ Equity |
||||
|
Current liabilities |
||||
|
Accounts payable |
$ 168,624 |
$154,024 |
||
|
Income taxes payable |
44,660 |
43,160 |
||
|
Total current liabilities |
213,284 |
197,184 |
||
|
Bonds payable |
232,882 |
212,882 |
||
|
Total liabilities |
446,166 |
410,066 |
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|
Stockholders’ equity |
||||
|
Common stock ($5 par) |
290,000 |
300,000 |
||
|
Retained earnings |
313,400 |
165,400 |
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|
Total stockholders’ equity |
603,400 |
465,400 |
||
|
Total liabilities and stockholders’ equity |
$1,049,566 |
$875,466 |
All sales were on account. Net cash provided by operating activities for 2014
was $248,240. Capital expenditures were $135,270, and cash dividends were
$59,056.
Compute the following ratios for 2014.(Round all
answers to 2 decimal places, e.g. 1.83 or 12.61%.)
|
(a) |
Earnings per share |
$ |
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|
(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 |
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|
(n) |
Free cash flow |
$ |
