Answer:
a) Earnings per share = Net income / Number of equity shares
Net income = $201,012
Number of equity shares = $266,800 / $5 = 53,360 shares
EPS = $201,012 / 53,360 shares
EPS = 3.77
b) Return on common stockholders' equity = Net income / Stockholders' Equity
Return on common stockholders' equity = $201,012 / $555,128
Return on common stockholders' equity = 36.21%
c) Return on assets = Net income / Average total assets
Average total assets = ($944,748 + $784,576) / 2
Average total assets = $864,662
Return on assets = $201,012 / $864,662
Return on assets = 23.25%
d) Current ratio = Current assets / Current liabilities
Current ratio = $347,668 / $187,220
Current ratio = 1.86 times
The comparative statements of Sheridan Company are presented here. SHERIDAN COMPANY Income Statements For the Years...
The comparative statements of Sheridan Company are presented
here.
SHERIDAN COMPANY
Income Statements
For the Years Ended December 31
2022
2021
Net sales
$1,734,400
$1,610,000
Cost of goods sold
967,000
925,520
Gross profit
767,400
684,480
Selling and administrative expenses
460,000
440,680
Income from operations
307,400
243,800
Other expenses and losses
Interest expense
20,240
18,400
Income before income taxes
287,160
225,400
Income tax expense
86,148
67,620
Net income
$ 201,012
$ 157,780
SHERIDAN COMPANY
Balance Sheets
December 31
Assets
2022
2021...
The comparative statements of Sheridan Company are presented here. SHERIDAN COMPANY Income Statements For the Years Ended December 31 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 Balance Sheets December 31 Assets 2017 2016...
The comparative statements of Sunland Company are presented here. SUNLAND COMPANY Income Statements For the Years Ended December 31 2022 2021 Net sales Cost of goods sold $2,178,400 $2,030,000 1,207,000 1,187,080 971,400 842,920 Gross profit Selling and administrative expenses 590,000 565,220 Income from operations 381,400 277,700 Other expenses and losses Interest expense 25.960 23,600 Income before income taxes 355,440 254,100 Income tax expense 106,632 76,230 Net income $ 248,808 $177,870 SUNLAND COMPANY Balance Sheets December 31 Assets 2022 2021 Current...
The comparative statements of Sunland Company are presented here. SUNLAND COMPANY Income Statements For the Years Ended December 31 2022 2021 Net sales Cost of goods sold $2,178,400 $2,030,000 1,207,000 1,187,080 971,400 842,920 Gross profit Selling and administrative expenses 590,000 565,220 Income from operations 381,400 277,700 Other expenses and losses Interest expense 25.960 23,600 Income before income taxes 355,440 254,100 Income tax expense 106,632 76,230 Net income $ 248,808 $177,870 SUNLAND COMPANY Balance Sheets December 31 Assets 2022 2021 Current...
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...
The comparative statements of Pharoah Company are presented here: PHAROAH COMPANY Income Statements For the Years Ended December 31 2018 2019 Net sales $1,898,740 $1,758,700 Cost of goods sold 1,066,740 1,014,200 Gross profit 832,000 744,500 Selling and administrative expenses 508,200 487,200 Income from operations 323,800 257,300 Other expenses and losses Interest expense 23,400 21,400 Income before income taxes 300,400 235,900 93,400 Income tax expense 74,400 $207,000 $161,500 Net income PHAROAH COMPANY Balance Sheets December 31 2018 2019 Assets Current assets...
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 Wahlberg Company are presented here. Wahlberg Company Income Statement For the Years Ended December 31 2020 2019 Net sales $1,815,100 $1,745,300 Cost of goods sold 1,011,300 995,000 Gross profit 803,800 750,300 Selling and administrative expenses 517,400 479,000 Income from operations 286,400 271,300 Other expenses and losses Interest expense 18,800 13,500 Income before income taxes 267,600 257,800 Income tax expense 80,016 77,100 Net income $ 187,584 $ 180,700 Wahlberg Company Balance Sheets December 31 Assets 2020 2019...
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 Assets 2020 2019...
The comparative statements of Crane Company are presented here: Crane Company Income Statements For the Years Ended December 31 2020 Net sales $1,898,740 Cost of goods sold 1,066,740 Gross profit 832,000 Selling and administrative expenses 508,200 Income from operations 323,800 Other expenses and losses Interest expense 23,700 Income before income taxes 300,100 Income tax expense 93,700 Net income $206,400 2019 $1,758,700 1,014,200 744,500 487,200 257,300 21,700 235,600 74,700 $160,900 Crane Company Balance Sheets December 31 Assets 2020 2019 Current assets...