P13-2A The comparative statements of Wahlberg Company are presented here. WAHLBERG COMPANY Income Statements For the Years Ended December 31 2017 2016 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 2016 WAHLBERG COMPANY Balance Sheets December 31 Assets 2017 Current assets Cash $ 60,100 Debt investments (short-term) 74,000 Accounts receivable 117,800 Inventory 126,000 $ 64,200 50,000 102,800 115.500 2016 WAHLBERG COMPANY Balance Sheets December 31 Assets 2017 Current assets Cash $ 60,100 Debt investments (short-term) 74,000 Accounts receivable 117,800 Inventory 126,000 Total current assets 377,900 Plant assets (net) 649,000 Total assets $1,026,900 Liabilities and Stockholders' Equity 2017 Current liabilities Accounts payable $ 160,000 Income taxes payable 43.500 Total current liabilities 203,500 Bonds payable 220,000 Total liabilities 423.500 Stockholders' equity Common stock ($5 par) 290,000 Retained earnings 313.400 Total stockholders' equity 603,400 Total liabilities and stockholders' equity $1,026,900 $ 64,200 50,000 102,800 115,500 332,500 520,300 $852,800 2016 $145,400 42,000 187,400 200,000 387,400 300,000 165.400 465.400 $852.800 Common stock ($5 par) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 290,000 313,400 603,400 $1,026,900 300,000 165,400 465,400 $852,800 All sales were on account. Net cash provided by operating activities for 2017 was $220,000. Capital expenditures were $136,000, and cash dividends were $70,000. Instructions Compute the following ratios for 2017. (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. (g) Inventory turnover. (h) Days in inventory. (1) Times interest earned. Asset turnover. (k) Debt to assets ratio. a) Free cash flow. Perform ratio analysis, and discuss changes in financial position and operating results. (LO 3), AN XLS