The comparative statements of Osborne Company are presented here. OSBORNE COMPAN

Question

The comparative statements of Osborne Company are presented here. OSBORNE COMPANY Income Statements For the Years Ended December 31 2014 2013 Net sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses $1,891,724 $1,751,684 832,000 744,500 501,184 480,184 264,316 330,816 Interest expense Income before income taxes Income tax expense Net income 21,166 243,150 307,650 $ 214,484 $168,984 OSBORNE COMPANY Balance Sheets December 31 sets 201 Current assets 100 64,200 50,000 103,984 116,666 334,850 532,628 $1,041.578 867,478 60, 74,000 118,984 Debt investments (short-term) Accounts receivable Inventory Total current assets 380,250 Plant assets (net) Total assets Liabilities and Stockholders' Equit Current liabilities Accounts payable $ 161,184 $146,584 Income taxes payable 189,750 Total current liabilities Bonds payable 205,850 Total liabilities 438,178402,078 Stockholders' equity 290,000 Common stock ($5 par) Retained earnings 300,000 165 400 Total stockholders' equity Total liabilities and stockholders' equity $1,041,578$867 478 All sales were on account. Net cash provided by operating activities for 2014 was $222,060. Capital expenditures were $135,300, and cash dividends were $66,484 Compute the following ratios for 2014, (Round all answers to 2 decimal places, eg. 1.83 or 12.61%.) (a) Earnings per share (b) Return on common stockholders' equity (c) Return on assets (d) Current ratico (e) Accounts receivable turnover () Average collection period (9) Inventory turnover (h) Days in inventory (i) Times interest earned ) Asset turnover (k) Debt to assets () Current cash debt coverage (m) Cash debt coverage (n) Free cash flow 603.400 465,400 times days mes days times times times times

Explanation / Answer

Answer: The following ratios for 2014 are calculated as below: (a) Earning per share =Net income / Number of shares =$214,484/58,000 $                             3.70 where, Number of shares =290,000/5 58000 shares (b) Return on common stockholder's equity =Net income/Average common stockholder's equity =214,484/((290,000+300,000)/2) 72.71% ( C) Return on asset =Net income/Total asset =214,484/1,041,578 20.59% (d) Current ratio = Current asset/Currect liabilities =380,250/205,850                                 1.85 :1

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---