Question
The comparative statements of Wahlberg Company are presented here: Wahlberg CompanyIncome StatementsFor the Years Ended December 31 2019 2018 Net sales $1,890,540 $1,750,500 Cost of
The comparative statements of Wahlberg Company are presented here:
Wahlberg CompanyIncome StatementsFor the Years Ended December 31 | ||||
2019 |
2018 |
|||
Net sales | $1,890,540 |
$1,750,500 |
||
Cost of goods sold | 1,058,540 |
1,006,000 |
||
Gross profit | 832,000 |
744,500 |
||
Selling and administrative expenses | 500,000 |
479,000 |
||
Income from operations | 332,000 |
265,500 |
||
Other expenses and losses | ||||
Interest expense | 22,000 |
20,000 |
||
Income before income taxes | 310,000 |
245,500 |
||
Income tax expense | 92,000 |
73,000 |
||
Net income | $218,000 |
$172,500 |
Wahlberg CompanyBalance SheetsDecember 31 | ||||
Assets |
2019 |
2018 |
||
Current assets | ||||
Cash | $60,100 |
$64,200 |
||
Debt investments (short-term) | 74,000 |
50,000 |
||
Accounts receivable | 117,800 |
102,800 |
||
Inventory | 126,000 |
115,500 |
||
Total current assets | 377,900 |
332,500 |
||
Plant assets (net) | 649,000 |
520,300 |
||
Total assets | $1,026,900 |
$852,800 |
||
Liabilities and Stockholders? Equity |
||||
Current liabilities | ||||
Accounts payable | $160,000 |
$145,400 |
||
Income taxes payable | 43,500 |
42,000 |
||
Total current liabilities | 203,500 |
187,400 |
||
Bonds payable | 220,000 |
200,000 |
||
Total liabilities | 423,500 |
387,400 |
||
Stockholders? equity | ||||
Common stock ($5 par) | 290,000 |
300,000 |
||
Retained earnings | 313,400 |
165,400 |
||
Total stockholders? equity | 603,400 |
465,400 |
||
Total liabilities and stockholders? equity | $1,026,900 |
$852,800 |
All sales were on account. Net cash provided by operating activities for 2019 was $239,000. Capital expenditures were $136,000, and cash dividends were $59,100.Compute the following ratios for 2019.?
(a) | Earnings per share | $ | |||
(b) | Return on common stockholders? equity | % | |||
(c) | Return on assets | % | |||
(d) | Current ratio | :1 | |||
(e) | Accounts receivable turnover | times | |||
(f) | Average collection period | days | |||
(g) | Inventory turnover | times | |||
(h) | Days in inventory | days | |||
(i) | Times interest earned | times | |||
(j) | Asset turnover | times | |||
(k) | Debt to assets ratio | % | |||
(l) | Free cash flow | $ |
Step by Step Solution
3.44 Rating (160 Votes )
There are 3 Steps involved in it
Step: 1
aEarnings per share Earnings per share Net Income Weighted average number of common shares 218000 58...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started