Question

Question 9 The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income Statement For the Years Ended December 31 2020 Net sales $1,813,600 Cost of goods sold 1,013,400 Gross profit 800,200 Selling and administrative expenses 514,800 Income from operations 285,400 Other expenses and losses Interest expense 17,400 Income before income taxes 268,000 Income tax expense 78,019 Net income $ 189,981 2019 $1,746,200 990,000 756,200 474,000 282,200 14,400 267,800 77,600 $ 190,200 Wahlberg Company Balance Sheets December 31 2020 2019 Assets Current assets Cash $60,000 $64,700

Answer 1

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Wahlberg Company
Income Statement	2020	2019
Sales	1,813,600.00	1,746,200.00
Total Sales	1,813,600.00	1,746,200.00
Cost of goods sold	1,013,400.00	990,000.00
Gross Margin	800,200.00	756,200.00
Operating expenses
Selling and administrative expense	514,800.00	474,000.00
Total Operating expenses	514,800.00	474,000.00
Income from Operations	285,400.00	282,200.00
Other expenses and losses
Interest Expense	17,400.00	14,400.00
Income before taxes	268,000.00	267,800.00
Income tax expense	78,019.00	77,600.00
Net Income	189,981.00	190,200.00
Balance Sheet
Assets	2020	2019
Current Assets
Cash	60,000.00	64,700.00
Debt Investments (short term)	70,200.00	49,600.00
Account Receivable Net	117,400.00	101,100.00
Inventory	123,700.00	115,500.00
Current Assets	371,300.00	330,900.00
Property, plant, and equipment
Plant assets (net)	598,900.00	523,900.00
Total Property, plant, and equipment	598,900.00	523,900.00
Total Assets	970,200.00	854,800.00
Current Liabilities
Account Payable	160,800.00	144,700.00
Income taxes payable	43,500.00	41,800.00
Current Liabilities	204,300.00	186,500.00
Long Term Liabilities
Bonds Payable	220,000.00	200,000.00
Total Long Term Liabilities	220,000.00	200,000.00
Total Liabilities	424,300.00	386,500.00
Stockholders' Equity
Common Stock, $ 5 Par	275,600.00	300,100.00
Retained Earnings	270,300.00	168,200.00
Total Stockholders' Equity	545,900.00	468,300.00
Total Liabilities & Stockholders' Equity	970,200.00	854,800.00
Number of Common Shares outstanding	2020
Common Stock	275,600.00
Par Value	5.00
Number of Common Shares outstanding	55,120.00
Average Total Stock Holders Equity	2020	2019
Total Stockholders' Equity	545,900.00	468,300.00
Average Total Stock Holders Equity	507,100.00
Average Assets	2020	2019
Total Assets	970,200.00	854,800.00
Average Assets	912,500.00
Average Account Receivable	2020	2019
Account Receivable Net	117,400.00	101,100.00
Average Account Receivable	109,250.00
Average Inventory	2020	2019
Inventory	123,700.00	115,500.00
Average Inventory	119,600.00

Ans a	2020
Earnings Per share	3.4
Net Income/Number of Common Shares outstanding
Ans b
Return on Common Stock holder's Equity	37.5%
Net Income/Average Total Stock Holders Equity
Ans c
Return on Total Assets	20.8%
Net Income / Average Total Assets
Ans d
Current Ratio	1.8
Current Assets/Current Liabilities
Ans e
Accounts Receivable Turnover	16.6
Sales/Average Accounts Receivable
Ans f
Average collection period	22.0
365/Accounts Receivable Turnover
Ans g
Inventory Turnover	8.5
Cost of goods sold/ Average Inventory
Ans h
Number of days in Inventory	43.1
365/Inventory Turnover
Ans i
Times Interest Earned	16.4
Income from Operations/ Interest Expense
Ans j
Asset Turnover	2.0
Sales/Average Total Assets
Ans k
Debt to Assets Ratio	0.2
Total Liabilities /Total Assets