Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Income Statements For the Years Ended December 31 2020 2019 Net sales $1,897,540 $1,757.500 Cost of goods sold 1,065,540 1.013,000 Gross profit 832.000 744.500 Selling

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Income Statements For the Years Ended December 31 2020 2019 Net sales $1,897,540 $1,757.500 Cost of goods sold 1,065,540 1.013,000 Gross profit 832.000 744.500 Selling and administrative expenses 507.000 486,000 Income from operations 325.000 258,500 Other expenses and losses Interest expense 24,000 22.000 Income before income taxes 301.000 236,500 Income tax expense 94.000 75.000 Net income $207.000 $161.500 Luterlasses Cash $60,100 $64.200 Debt investments (short-term) 74,000 50,000 Accounts receivable 124,800 109,800 Inventory 128.000 117.500 Total current assets 386,900 341,500 Plant assets (net) 659.000 530,300 Total assets $1.045,900 $871,800 Liabilities and Stockholders' Equity Current liabilities Accounts payable $167.000 $152,400 Income taxes payable 45,500 44,000 Total current liabilities 212.500 196,400 Bonds payable 230,000 210,000 Total liabilities 442.500 406,400 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 $1.045,900 $871,800 All sales were on account. Net cash provided by operating activities for 2020 was $250,000. Capital expenditures were $135.000, and cash dividends were $59.000. Compute the following ratios for 2020. (Round free cash flow to decimal places, es 5.275 and all other answers to 2 decimal places, o 1.83 or 1.83%. Use 365 days for calculation) (a) Earnings per share (b) Return on common stockholders' equity (c) Return on assets de (d) Current ratio :1 le) Accounts receivable turnover times (1) Average collection period days Inventory turnover times (h) Days in inventory days Times interest earned times 0 Asset turnover times ) Debt to assets ratio %6 00) Free cash flow

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions