The comparative statements of Sheridan Company are presented here.
SHERIDAN COMPANY |
||||
---|---|---|---|---|
2017 |
2016 |
|||
Net sales |
$1,899,640 |
$1,759,600 |
||
Cost of goods sold |
1,067,640 |
1,015,100 |
||
Gross profit |
832,000 |
744,500 |
||
Selling and administrative expenses |
509,100 |
488,100 |
||
Income from operations |
322,900 |
256,400 |
||
Other expenses and losses |
||||
Interest expense |
24,100 |
22,100 |
||
Income before income taxes |
298,800 |
234,300 |
||
Income tax expense |
94,100 |
75,100 |
||
Net income |
$ 204,700 |
$ 159,200 |
SHERIDAN COMPANY |
||||
---|---|---|---|---|
Assets |
2017 |
2016 |
||
Current assets |
||||
Cash |
$ 60,100 |
$ 64,200 |
||
Debt investments (short-term) |
74,000 |
50,000 |
||
Accounts receivable |
126,900 |
111,900 |
||
Inventory |
128,100 |
117,600 |
||
Total current assets |
389,100 |
343,700 |
||
Plant assets (net) |
660,000 |
531,300 |
||
Total assets |
$1,049,100 |
$875,000 |
||
Liabilities and Stockholders’ Equity |
||||
Current liabilities |
||||
Accounts payable |
$ 169,100 |
$154,500 |
||
Income taxes payable |
45,600 |
44,100 |
||
Total current liabilities |
214,700 |
198,600 |
||
Bonds payable |
231,000 |
211,000 |
||
Total liabilities |
445,700 |
409,600 |
||
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 |
$1,049,100 |
$875,000 |
All sales were on account. Net cash provided by operating
activities for 2017 was $231,000. Capital expenditures were
$136,000, and cash dividends were $56,700.
Compute the following ratios for 2017. (Round all
answers to 2 decimal places, e.g. 1.83 or 1.83%.)
(a) | Earnings per share |
$Enter earnings per share in dollars |
|||
(b) | Return on common stockholders’ equity |
Enter return on common stockholders' equity in percentages |
% | ||
(c) | Return on assets |
Enter return on assets in percentages |
% | ||
(d) | Current ratio |
Enter the current ratio value |
:1 | ||
(e) | Accounts receivable turnover |
Enter accounts receivable turnover in times |
times | ||
(f) | Average collection period |
Enter average collection period in days |
days | ||
(g) | Inventory turnover |
Enter inventory turnover in times |
times | ||
(h) | Days in inventory |
Enter the number of days in inventory |
days | ||
(i) | Times interest earned |
Enter times interest earned |
times | ||
(j) | Asset turnover |
Enter asset turnover in times |
times | ||
(k) | Debt to assets ratio |
Enter debt to assets ratio in percentages |
% | ||
(l) | Free cash flow |
$Enter free cash flow in dollars |
1 | Earnings per share | = Earnings available to equity shareholders | |||||
Outstanding weighted average number of equity shares | |||||||
No. of shares outstanding at beginning of year = 3,00,000 / 5 = 60,000 | |||||||
No. of shares outstanding at end of year = 2,90,000 / 5 = 58,000 | |||||||
Outstanding weighted average number of equity shares = 58,000 +2,000/2 = 59,000 | |||||||
= 2,04,700 / 59,000 | |||||||
= $ 3.47 | |||||||
2 | Return on common shareholders equity | = 2,04,700 / 2,95,000 | |||||
= 69.38% | |||||||
3 | Return on assets | = Net Income | |||||
Average Total assets | |||||||
Average total assets | = 10,49,100 + 8,75,000 | ||||||
2 | |||||||
= 9,62,050 | |||||||
Return on assets | = 2,04,700 / 9,62,500 *100 | ||||||
= 21.27% | |||||||
4 | Current ratio | = Current assets | |||||
Current liabilities | |||||||
= 3,89,100 | |||||||
2,14,700 | |||||||
= 1.81 |
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