Question

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 Cash $60,100 $64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable 126.000 111.000 vacy Policy. I 2000-2019 John Wiley & Sons, Inc. All Rights Reserved. A Division of John Wiley &

Answer 1

Net Income a tps . No of shares $206400 Soow shares = 13.56 per shares) 6 Retuman common stockholdor equity = Net Income xao Arevage common stock holder 1. equity $206,40 xico (603,400+ 465,400)/2 $206,400 x 100 534,400 138.62 % U Return on Asses. (0) Net Income Average total Assets $206,400 x10 $1,047,800+ $873,700/2 $20640x160 960750

(d) current Ratio = Uporent Assets exrrent l'abilities 387,80 213,400 11.82:1] sales a Account recievable tunarere Average Account Recievable 91,898740 (126.000+ 144,000 1/ $1898740 1,1850 Hoto 16.02 times ] (f) Average collection periode 365x Avelope AR Sales 3650 118500 1,898710 Inventory tronovers - 122.78 days) COG5 Avuage Inventory 1,066,740 127700f 11720012 1,066,740 122,45 18.71 times)

chy Days in Insentory 365X Avuage Inventory Cost of good sold s 365 X 122,450 1,066,740 z 41,89:- I days EBIT cis Times Interest eameda Interest expense 323,800 23700 113.66 = times (1 Tumovere Asset ) Net sales Average total Assets $1,898,740 960750 . 11.98 times) cky Debt to assets ratios Debt xico assets ५५५५०० tlo $1,047,800" 142.41%

- " Free Cash flow= Cash Provided by operating Activities - capital expenditure $238.000 - 51136000 A 102000