The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income Statement For the Years...

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The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income Statement For the Years Ended Dece

December 31 2020 2019 Assets Current assets Cash Debt investments (short-term) Accounts receivable Inventory Total current as

BACK NEXT All sales were on account. Net cash provided by operating activities for 2020 was $245,000. Capital expenditures we

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Answer 1

Answer #1

Earning per share = Net income / Weighted average number of common shares

Earning per share = $190,179 / ($55,840 + 59,420) / 2)

Earning per share = $3.3

Return on common stockholders equity = Net income / Average Common stockholders equity

Return on common stock holders equity = $190,179 / (($547,000 + $463,800) / 2)

Return on common stock holders equity = 37.63%

Return on assets = Net income / Average total Assets

Return on assets = $190,179 / (($970,900 + $850,600) / 2)

Return on assets = 20.89%

Current Ratio = Current assets / Current Liabilities

Current Ratio = $370,300 / $203,900

Current Ratio = 1.82 : 1

Accounts Receiveble Turnover ratio = Net credit sales / Average accounts Receiveble

Accounts Receiveble Turnover ratio = $1,815,700 / (($116,700+$102,300)/2)

Accounts Receiveble Turnover ratio = 16.58 Times

Average collection period = 365 / Accounts Receiveble turnover ratio

Average collection period = 365 / 16.58

Average collection period = 22 Days

Inventory turn over ratio = Cost of goods sold / Average inventory

Inventory turn over ratio = $1,011,000 / (($123,800 + $115,700) / 2)

Inventory turn over ratio = 8.44 Times

Number of days sales in inventory = 365 Days / Inventory Turnover

Number of days sales in inventory = 365 Days / 8.44 Times

Number of days sales in inventory = 43.23 Days

Times Interest Earned = Income before interest and taxes / Interest Expenses

Times Interest Earned = $289,700 / $19,000

Times Interest Earned = 15.24 Times

Assets Turnover ratio = Net Sales / Average total Assets

Assets Turnover ratio = $1,815,700 / (($970,900 + $850,600)/2)

Assets Turnover ratio = 1.99 Times

Debt to assets = Total Liabilities / Total Assets

Debt to assets = $423,900 / $970,900

Debt to assets = 43.67%

Free Cash flow = Operating Cash flow - Capital Expenditure - Dividends

Free Cash flow = $245,000 - $131,000 - $89,079

Free Cash flow = $24,921

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