Question

Problem 18-2A le The comparative statements of Painter Tool Company are presented below. PAINTER TOOL COMPANY Income Statement For the Years Ended December 31 2017 2016 Net sales $1,816,900 $1,754,300 Cost of goods sold 1,012,500 990,000 Gross profit 804,400 764,300 Selling and administrative expenses 478,800 517,400 Income from operations 285,500 287,000 Other expenses and losses Interest expense 13,000 17,500 Income before income taxes 269,500 272,500 81,400 77,800 Income tax expense Net income $188,100 $ 194,700 PAINTER TOOL COMPANY Balance Sheets December 31 2017 2016 Assets Current assets tion Cash $59,700$65,000 Short-term investments 68,400 50,600 116,200 Accounts receivable (net) 101,300 123,700 115,500 Inventory Total current assets 332,400 368,000 Plant assets (net) 595,100 522,700 $963,100 $855,100 Total assets ers' Equity rved. Current liabilities $159,000 $144,400 Accounts payable Income taxes payable 41,500 43,200 202,200 Total current liabilities 185,900

Answer 1

(a) tanning Per ShossNet Sncame 臭0 wleighled Avesage ommon hlejshked Aveage Share 2013 188100 식$3.20 58300 (b)--33.3 (C) 2071. | (e)一一1:21.1. (a) 8.5 timeb 16-4 tino .2 times

Equsty b) Retuen on Common Sfock haldexs on Stockholder Equity. $188, l00 33 20/788, loo 2 uit 201t3 368000-1 1.8231 202 ,20o l eneu Acld Test Ratio 1 1.2 2011.--363e00 -122100-0 20 200

) Account Receivable TusooveNet (adit S Avcıoge Accoun /164 times 20iS1 6,900 116200+loL,300 2 3.5 times : 201 t = 1012,So。 (23,300 t5500 Totat Inlesest 237000 | 16:4 times 201T= DO onover Net Sales Average total Aaeth 는 . I3/6,900 (963,100 t855 0o) 2014: 2. abili