Homework Answers
Answer :-
a) Earnings per share = Net Income / Number of shares outstandings
Net income of 2020 = $207,000
Number of shares outstanding = Total common stock / Par value
Number of shares outstanding = $290,000/ $5
No.of share outstanding = 58,000 shares
Earning per share = $ 207,000 / 58,000 shares = $3.57
(b)Return on common stockholder's equtiy = Net Income / Average common stockholder equity
Average common stockholder equity = (290,000 + 300,000) / 2 = $295,000
Return on common stockholder's equtiy = $207,000/ $295,000
Return on common stockholder's equtiy = 70.17%
(c)Return on assets = Net income / total assets
Total assets =$1,045,900
Return on assets = $207,000 / $1,045,900
Return on assets = 19.79%
(d)Current ratio = Current assets / current liabilities
Current Assets = $386,900
Current Liabilities = $212,500
Current ratio = $386,900/ $212,500
Current ratio = 1.82 :1
(e)Account receivable turnover = Sales/ average accounts receivable
Sales = $1,897,540
Average account receivable = ($124,800 + $109,800)/2
Average account receivable = $117,300
Account receivable turnover = $1,897,540 / $117,300
Account receivable turnover = 16.18 times
(f) Average collection period = 365 / Account receivable turnover
Average collection period = 365 / 16.18 times
Average collection period = 22.55 or 23 days (approx.)
(g)Inventory turnover=Cost of goods sold / average inventory
Cost of goods sold = 1,065,540
Average Inventory = ($128,000 + $117,500)/2
Average Inventory = $122,750
Inventory turnover = 1,065,540 / $122,750
Inventory turnover = 8.68 times
(h)Days in Inventory = 365/ Inventory turnover
Days in Inventory = 365 / 8.68 times
Days in inventory = 42 days
(i)Times interest earned = Earnings before interest and taxes / interest
Earnings before interest and taxes = Net income + Interest expense + Tax expenses
Earnings before interest and taxes = $207,000 + $24,000 + $94,000
Earnings before interest and taxes = $325,000
Interest = $24,000
Times Interest earned = $325,000/ $24,000
Times Interest earned= 13.54 times
(j)Asset turnover= Sales/ average total assets
Sales = $1,897,540
Average total assets =( $1,045,900 + $871,800)/2
Average total assets = $958,850
Asset turnover = $1,897,540/ $958,850
Asset turnover = 1.98 times
(k)Debt to assets ratio = Total liabilities before stockholder equity/ Total assets
Total liabilities = $442,500
Total Assets = $1,045,900
Debt to assets ratio = $442,500 / $1,045,900
Debt to assets ratio = 42.31%
(l)Free cash flow = Net cash provided by operating activities - Capital expenditures - cash dividends
Net cash provided by operating activities for 2020 was $251,000 Capital expenditures were $135,000, and cash dividends were $59,000
Free Cash Flow = $251,000 -$135,000 - $59,000
Free Cash Flow = $57,000
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Problem 13-02A (Video) The comparative statements of Carla Vista Co. are presented here: Carla Vista Co....
Problem 13-02A (Video) The comparative statements of Carla Vista Co. are presented here: All sales were...
Problem 13-02A (Video) The comparative statements of Carla Vista Co. are presented here: All sales were on account. Net cash provided by operating activities for 2020 was $251,000. Capital expenditures were $135,000, and cash dividends were $59,000. Compute the following ratios for 2020. (Round free cash flow to o decimal places, e.g. 5,275 and all other answers to 2 decimal places, e.g. 1.83 or 1.83%. Use 365 days for calculation.) (a) Earnings per share 2019 $1,757,500 1,013,000 744,500 486,000 258,500...
The comparative statements of Carla Vista Co. are presented here. CARLA VISTA CO. Income Statements For...
The comparative statements of Carla Vista Co. are presented here. CARLA VISTA CO. Income Statements For the Years Ended December 31 2017 2016 Net sales $1,898,540 $1,758,500 Cost of goods sold 1,066,540 1,014,000 Gross profit 832,000 744,500 Selling and administrative expenses 508,000 324,000 487,000 257,500 Income from operations Other expenses and losses Interest expense 23,700 21,700 Income before income taxes Income tax expense 300,300 93,700 $ 206,600 235,800 74,700 $ 161,100 Net income CARLA VISTA CO. Balance Sheets December 31...
Problem 13-02A The comparative statements of Cullumber Company are presented here. CULLUMBER COMPANY Income Statements For...
Problem 13-02A
The comparative statements of Cullumber Company are presented
here.
CULLUMBER COMPANY
Income Statements
For the Years Ended December 31
2022
2021
Net sales
$1,586,400
$1,470,000
Cost of goods sold
887,000
845,040
Gross profit
699,400
624,960
Selling and administrative expenses
420,000
402,360
Income from operations
279,400
222,600
Other expenses and losses
Interest expense
18,480
16,800
Income before income taxes
260,920
205,800
Income tax expense
78,276
61,740
Net income
$ 182,644
$ 144,060
CULLUMBER COMPANY
Balance Sheets
December 31
Assets...
Question 5 The comparative statements of Cullumber Company are presented here. CULLUMBER COMPANY ncome StatementS For...
Question 5 The comparative statements of Cullumber Company are presented here. CULLUMBER COMPANY ncome StatementS For the Years Ended December 31 2020 2019 Net sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses $1,896,240 $1,756,200 1,011,700 744,500 484,700 259,800 1,064,240 832,000 505,700 326,300 Interest expense Income before income taxes Income tax expense Net income 23,300 303,000 93,300 $209,700 21,300 238,500 74,300 $164,200 Balance Sheets December 31 Assets 2020 2019 Current assets...
Problem 18-02A (Video) The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income Statement...
Problem 18-02A (Video) The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income Statement For the Years Ended December 31 2020 2019 Net sales $1,810,000 $1,745,000 Cost of goods sold 1,005,000 970,000 Gross profit 805,000 775,000 Selling and administrative expenses 511,000 472,000 Income from operations 294,000 303,000 Other expenses and losses Interest expense 17,000 13,000 Income before income taxes 277,000 290,000 Income tax expense 77,500 76,000 Net income $ 199,500 $ 214,000 Wahlberg Company Balance Sheets December 31...
Problem 18-02A (Video) The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income Statement...
Problem 18-02A (Video) The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income Statement For the Years Ended December 31 2020 Net sales $1,817,200 Cost of goods sold 1,012,800 Gross profit 804,400 Selling and administrative expenses 516,400 Income from operations 288,000 Other expenses and losses Interest expense 17,700 Income before income taxes 270,300 Income tax expense 80,022 Net income $ 190,278 2019 $1,749,800 970,000 779,800 475,600 304,200 15,000 289,200 77,900 $ 211,300 Wahlberg Company Balance Sheets December 31...
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The financial statements of Carla Vista Inc. are presented here: CARLA VISTA INC. Income Statement Year...
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Problem 13-2A The comparative statements of Blossom Company are presented here. BLOSSOM COMPANY Income Statements For...
Problem 13-2A The comparative statements of Blossom Company are presented here. BLOSSOM COMPANY Income Statements For the Years Ended December 31 2017 2016 Net sales $1,893,340 $1,753,300 Cost of goods sold 1,061,340 1,008,800 Gross profit 832,000 744,500 Selling and administrative expenses 502,800 481,800 Income from operations 329,200 262,700 Other expenses and losses Interest expense 23,700 21,700 Income before income taxes 305,500 241,000 Income tax expense 93,700 74,700 Net income $ 211,800 $ 166,300 BLOSSOM COMPANY Balance Sheets December 31 Assets...
The comparative statements of Sheridan Company are presented here. SHERIDAN COMPANY Income Statements For the Years...
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Problem 13-02A (Video) The comparative statements of Carla Vista Co. are presented here: All sales were on account. Net cash provided by operating activities for 2020 was $251,000. Capital expenditures were $135,000, and cash dividends were $59,000. Compute the following ratios for 2020. (Round free cash flow to o decimal places, e.g. 5,275 and all other answers to 2 decimal places, e.g. 1.83 or 1.83%. Use 365 days for calculation.) (a) Earnings per share 2019 $1,757,500 1,013,000 744,500 486,000 258,500...
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Problem 13-02A
The comparative statements of Cullumber Company are presented
here.
CULLUMBER COMPANY
Income Statements
For the Years Ended December 31
2022
2021
Net sales
$1,586,400
$1,470,000
Cost of goods sold
887,000
845,040
Gross profit
699,400
624,960
Selling and administrative expenses
420,000
402,360
Income from operations
279,400
222,600
Other expenses and losses
Interest expense
18,480
16,800
Income before income taxes
260,920
205,800
Income tax expense
78,276
61,740
Net income
$ 182,644
$ 144,060
CULLUMBER COMPANY
Balance Sheets
December 31
Assets...
Question 5 The comparative statements of Cullumber Company are presented here. CULLUMBER COMPANY ncome StatementS For the Years Ended December 31 2020 2019 Net sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses $1,896,240 $1,756,200 1,011,700 744,500 484,700 259,800 1,064,240 832,000 505,700 326,300 Interest expense Income before income taxes Income tax expense Net income 23,300 303,000 93,300 $209,700 21,300 238,500 74,300 $164,200 Balance Sheets December 31 Assets 2020 2019 Current assets...
Problem 18-02A (Video) The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income Statement For the Years Ended December 31 2020 Net sales $1,817,200 Cost of goods sold 1,012,800 Gross profit 804,400 Selling and administrative expenses 516,400 Income from operations 288,000 Other expenses and losses Interest expense 17,700 Income before income taxes 270,300 Income tax expense 80,022 Net income $ 190,278 2019 $1,749,800 970,000 779,800 475,600 304,200 15,000 289,200 77,900 $ 211,300 Wahlberg Company Balance Sheets December 31...
The financial statements of Carla Vista Inc. are presented here: CARLA VISTA INC. Income Statement Year Ended December 31, 2021 Service revenue $2,171,500 Expenses Operating expenses $1,885,500 Interest expense 95,000 1,980,500 Income before income tax 191,000 Income tax expense 40,000 Net income $151,000 CARLA VISTA INC. Statement of Financial Position December 31, 2021 Assets Current assets Cash $62,100 Trading investments 51,000 Accounts receivable 263,800 Supplies 25,000 Property, plant, and equipment Total assets $401,900 591,300 $993,200 $136,500 Liabilities and Shareholders' Equity...
The financial statements of Carla Vista Inc. are presented here: CARLA VISTA INC. Income Statement Year Ended December 31, 2021 Service revenue $2,171,500 Expenses Operating expenses $1,885,500 Interest expense 95,000 1,980,500 Income before income tax 191,000 Income tax expense 40,000 Net income $151,000 CARLA VISTA INC. Statement of Financial Position December 31, 2021 Assets Current assets Cash $62,100 Trading investments 51,000 Accounts receivable 263,800 Supplies 25,000 Property, plant, and equipment Total assets $401,900 591,300 $993,200 $136,500 Liabilities and Shareholders' Equity...
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