Cheyenne Company manufactures backpacks. During 2022. Cheyenne issued bonds at 12% interest and used the cash proceeds to purchase treasurystock. The following financial information is available for Cheyenne Company for the years 2022 and 2021. 2022 2021 $11,250,000 $11,250,000 3,125.000 2,800.000 750.000 210,000 837.500 937,500 1,335,000 1.539.000 Sales revenue Net income Interest expense Tax expense Dividends paid on common stock Dividends paid on preferred stock Total assets [year-end) Average total assets Total liabilities (year-end) Avg total common stockholders' equity 450.000 450,000 18,125.000 21.093.750 26,644.500 19,609,375 9,000,000 4,500,000 21,150,000 14,100,000 (a) Use the information above to calculate the following ratios for both years: (Round answers to 1 decimal place, es 12.5% or 12.5.) 2022 2021 (1) Return on assets 14.27 1172 (2) ) Return on common stockholders' equity 19.85 X 1477 13) Payout ratio 63.75 X 63.64 5 Debt to assets rato 4965 X 2133 % 15) Times interest earned 5.35 times 20.34 times The comparative statements of Crane Company are presented here 2021 $1.820,000 1,066,360 753,640 CRANE COMPANY Income Statements For the Years Ended December 31 2022 Net sales $1.956,400 Cost of goods sold 1,087,000 Gross profit 869,400 Selling and administrative expenses 530.000 Income from operations 339,400 Other expenses and losses Interest expense 23,320 Income before income taxes 316,080 Income tax expense 94.824 Net income $221.256 507,740 245,900 21,200 224,700 67.410 $ 157,290 CRANE COMPANY Balance Sheets December 31 Assets 2022 2021 $63.706 $ 68,052 78.440 53,000 Current assets Cash Debt investments (short-term Accounts receivable Inventory Total current assets Plant assets (net) 124 868 108.968 122.430 133.560 400,574 352,450 687,940 551.518 Total assets $1,088.514 5903,968 Liabilities and Stockholders' Equity $189.500 $154 124 46.110 44.520 215.710 Llabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock ($5 par Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 198,644 212.000 233,200 448.910 410 644 307 400 318,000 332 204 175,324 493,324 639.604 51,088,514 $903.968 All sales were on account. Net cash provided by operating activities for 2022 was $233,200. Capital expenditures were $144.160, and cash dividends were $64.376. Compute the following ratios for 2022. (Round all answers to 2 decimal places, e3. 1.83 or 1.83%) la) 3.60 b) Earnings per share Return on common stockholders equity Return on assets 39.06 X c) 22.21 % Id) Current ratio 186 1 le) Accounts receivable turnover 1673 times 17) Average collection period days le Inventory turnover times th) Days in inventory days Times interest earned times 1000 Asset turnover times Debt to assets ratio Free cash flow
