The comparative statements of Waterway Company are presented here. Waterway Company Income Statements For the Years...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The comparative statements of Waterway Company are presented here. Waterway Company Income Statements For the Years Ended December 31 2022 2021 Net sales $1,818,700 $1,749,800 Cost of goods sold 1,007,700 987,000 Gross profit 811,000 762,800 Selling and administrative expenses 518,400 480,200 Income from operations 292,600 282,600 Other expenses and losses Interest expense 17,600 14,300 Income before income taxes 275,000 268,300 Income tax expense 80,180 77,300 Net income $194,820 $191,000 Waterway Company Balance Sheets December 31 2022 2021 Assets Current assets Cash $60,200 $64,200 Debt investments (short-term) 69,600 49,900 Accounts receivable (net) 117,400 101,300 Inventory 123,800 114,800 Total current assets 371,000 330,200 Plant assets (net) 598,400 516,800 Total assets $969,400 $847,000 Liabilities and Stockholders' Equity Current liabilities Accounts payable $160,000 $145,500 Income taxes payable 42,300 42,200 Total current liabilities 203,100 187,700 Bonds payable 220,000 200,000 Total liabilities 423,100 387,700 Stockholders' equity Common stock ($5 par) 277,700 295,300 Retained earnings 268,600 164,000 Total stockholders' equity 546,300 459,300 Total liabilities and stockholders' equity $969,400 $847,000 All sales were on credit. Net cash provided by operating activities for 2022 was $238,000. Capital expenditures were $134,000, and cash dividends paid were $90,220. Compute the following ratios for 2022. (Round Earnings per share, Current ratio and Asset turnover to 2 decimal places, e.g. 1.65 or 1.65:1, and all other answers to 1 decimal place, eg. 6.8 or 6.8%. Use 365 days for calculation.) (a) Earnings per share (b) Return on common stockholders' equity (c) Return on assets (d) Current ratio (e) Accounts receivable turnover (f) Average collection period (s) Inventory turnover (h) Days in inventory $ 3.40 38.7 % 21.45 % 1.83 :1 times days times days 10 Times interest earned times Asset turnover times (k) Debt to assets ratio % 00 Free cash flow The comparative statements of Waterway Company are presented here. Waterway Company Income Statements For the Years Ended December 31 2022 2021 Net sales $1,818,700 $1,749,800 Cost of goods sold 1,007,700 987,000 Gross profit 811,000 762,800 Selling and administrative expenses 518,400 480,200 Income from operations 292,600 282,600 Other expenses and losses Interest expense 17,600 14,300 Income before income taxes 275,000 268,300 Income tax expense 80,180 77,300 Net income $194,820 $191,000 Waterway Company Balance Sheets December 31 2022 2021 Assets Current assets Cash $60,200 $64,200 Debt investments (short-term) 69,600 49,900 Accounts receivable (net) 117,400 101,300 Inventory 123,800 114,800 Total current assets 371,000 330,200 Plant assets (net) 598,400 516,800 Total assets $969,400 $847,000 Liabilities and Stockholders' Equity Current liabilities Accounts payable $160,000 $145,500 Income taxes payable 42,300 42,200 Total current liabilities 203,100 187,700 Bonds payable 220,000 200,000 Total liabilities 423,100 387,700 Stockholders' equity Common stock ($5 par) 277,700 295,300 Retained earnings 268,600 164,000 Total stockholders' equity 546,300 459,300 Total liabilities and stockholders' equity $969,400 $847,000 All sales were on credit. Net cash provided by operating activities for 2022 was $238,000. Capital expenditures were $134,000, and cash dividends paid were $90,220. Compute the following ratios for 2022. (Round Earnings per share, Current ratio and Asset turnover to 2 decimal places, e.g. 1.65 or 1.65:1, and all other answers to 1 decimal place, eg. 6.8 or 6.8%. Use 365 days for calculation.) (a) Earnings per share (b) Return on common stockholders' equity (c) Return on assets (d) Current ratio (e) Accounts receivable turnover (f) Average collection period (s) Inventory turnover (h) Days in inventory $ 3.40 38.7 % 21.45 % 1.83 :1 times days times days 10 Times interest earned times Asset turnover times (k) Debt to assets ratio % 00 Free cash flow
Expert Answer:
Answer rating: 100% (QA)
To calculate the requested ratios for Waterway Company for the year 2022 we will use the provided fi... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119493631
9th edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
Posted Date:
Students also viewed these accounting questions
-
rses/341137/quizzes/secured#lockdown P Edit View Insert Format Tools Table 12pt Paragraph D Question 62 BIUA 2 T | O words 3 pts Extra credit: In order to receive full credit, please fully answer the...
-
Dependent samples t test In a separate piece of paper, complete the problem stated below. Make sure to turn in your paper at the end of the class. Researchers have long suspected that texting has a...
-
The comparative statements of Wahlberg Company are presented here. All sales were on account. Net cash provided by operating activities for 2022 was $220,000. Capital expenditures were $136,000, and...
-
The following balance sheets were prepared for Pam Corporation and Slest Company on January 1, 20X2, just before they entered into a business combination: Pam acquired all of Slest Companys assets...
-
Refer to Exercise 9-13. Find the process capability index Cpk, and comment on process performance. If the target value is 47.5 ppm, find the Cpm, and Cpmk indices and comment on their values. If the...
-
AEE Company manufactures a product that passes in four departments in a continuous process. Department C had no beginning work in process and transferred in 36,000 units from Department B, each with...
-
A major purpose of the Information Systems Audit and Control Foundation's publication called COBIT: Control Objectives for Information and Related Technologies is: a. To establish a basis for a...
-
Cullen Construction Company, which began operations in 2014, changed from the completed-contract to the percentage-of-completion method of accounting for long-term construction contracts during 2015....
-
Assume that you are the founder and the CEO of a local Small and Medium Enterprise (SME). Your customers are mostly international companies that sell medical devices. These companies design their...
-
Q.3 The stiffness of the beam shown in Figure 2 is EI = 200 kN m and the section modulus is 35 10 mm. (a) Determine the deflection of B and the bending stresses at A and B. (b) Repeat part (a) but...
-
Consider the surface given by x - 4x + y = z. (a) Describe the traces of the surface in z = k. (b) What is the minimum value of k such that z = k intersects the surface. Explain. (c) Find all points...
-
If the fixed manufacturing costs were $23,800 and the fixed selling and administrative expenses were $10,780, prepare an income statement according to the variable costing concept. Round all final...
-
6. The diagram below shows three neutral metal spheres, x, y, and z, in contact and on insulating stands. X N III Sketch the charge distribution on the spheres when a positively charged rod is...
-
Consider = h(y, z) as a parametrized surface in the natural way. Write the equation of the tangent plane to the surface at the point (1, -2, 4) given that ah (-2,4) = -1 and Oh (-2, 4) = 2.
-
3. A body moves from point A to point B under the action of a force varying in magnitude as shown in figure, then the work done is? 201 5+ MA 0 15- 10- -5 -10+ -15
-
Harmony Company sells hand-knit scarves. Each scarf sells for $40. The company pays $90 to rent vending space for one day. The variable costs are $11 per scarf. How many scarves should the company...
-
Suppose that you are part of a virtual team and must persuade other team members on an important matter (such as switching suppliers or altering the project deadline). Assuming that you cannot visit...
-
Determine the assets to revenues ratio for the commercial construction company. What insight does this give you into the companys financial operations?
-
Determine the collection periodwith and without retentionand receivable turns for the commercial construction company. What insight does this give you into the companys financial operations?
-
Determine the working capital turns for the commercial construction company. What insight does this give you into the companys financial operations?
Study smarter with the SolutionInn App