Comprehensive Problem 2- St of Cash Flows and Ratios Algo F. Luchessi Inc. Income Statement For years ended December 31, 2017 and 2018 F. Luchessi Inc. Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Change 2018 2017 Current assets: Sales (all on credit) Cost of goods sold Gross margin $619,000 $588,000 (345.000) (283.000) 274,000 305,000 Cash $62,730 $32,100 $30,630 36,000 46,000 Accounts receivable (net) Inventory Prepaid expenses Other current assets 43,000 48,000 7,000 2,000 1,600 3,500 -1,900 Depreciation expense Other operating 37,000 52,000 2.230 3.400 -1170 132.000 110.000 Total current assets 157,560 121,000 36,560 expenses Total operating 169,000 162,000 expenses Operating income 105.000 143.000 Long-term Investments 86,000 60,000 26,000 Other income Plant assets 312,000 261,000 51,000 (expenses) Less: accumulated depreciation Interest expense (5,000) (3,700) (78,600) (52,000) 26,600 Gain on sale of 6,300 4,400 Total plant assets 233.400 209.000 24.400 investments Loss on sale of plant (3.500) (4.200) Total assets 476.960 390.000 86.960 assets Total other income (14,800) (3,500) (expenses) Current liabilities: Income before income 102,800 139,500 Accounts payable $29,400 $30,000 $-600 taxes Income taxes expense (30,840) (41.850) $71.960 $97.650 Accrued liabilities 7,200 2.400 39,000 1,200 9.000 6.600 45,000 -6,000 6,000 Net income Income taxes payable Total current liabilities F. Luchessi Inc. Long term liabilities: Notes Payable Statement of Retained Earnings 249,000 185,000 64,000 For the year ended December 31, 2018 Total liabilities 288,000 230,000 58,000 Long term liabilities: Notes Payable F. Luchessi Inc. 185,000 64,000 249,000 Statement of Retained Earnings 288,000 230,000 58,000 For the year ended December 31, 2018 2017 Total liabilities 2018 $35,000 $0 Stockholders' equity Ret. earnings, Jan. 1 100,000 25,000 100,000 Common stock, $5 par value (43.000) (62.650) Additional paid-in capital 71,960 97,650 Add: net income 25,000 Deduct: Dividends Increase in retained earnings Ret. earnings, Dec. 31 35,000 28.960 63.960 28,960 35,000 Retained earnings 160,000 28,960 188,960 $63.960 $35.000 Total stockholders' equity Total liabilities and $390.000 $86.960 $476.960 stockholders' equity Other information: Shares of common 20,000 20,000 stock outstanding Earnings per share Dividends per share Market price per share, common stock $4.88 $3.13 $3.6 $2.15 $13 $16 Enter Numerator Value Choose Numerator Enter Choose Denominator Denominator Value Ratio urrent ratio cid-test ratio ventory turnover Days' sales in inventory Accounts receivable turnover Days' sales inreceivables Total asset turnover Debt-to-equity ratio Profit margin Return on total assets Return on common stockholders' equity Price/earnings ratio (P/E) Dividend yield