Problem 13-2A

The comparative statements of Osborne Company are presented here.

OSBORNE COMPANY Income Statements For the Years Ended December 31
2014	2013
Net sales	$1,892,435	$1,752,395
Cost of goods sold	1,060,435	1,007,895
Gross profit	832,000	744,500
Selling and administrative expenses	501,895	480,895
Income from operations	330,105	263,605
Other expenses and losses
Interest expense	23,307	21,307
Income before income taxes	306,798	242,298
Income tax expense	93,307	74,307
Net income	$213,491	$167,991

OSBORNE COMPANY Balance Sheets December 31
Assets	2014	2013
Current assets
Cash	$60,100	$64,200
Debt investments (short-term)	74,000	50,000
Accounts receivable	119,695	104,695
Inventory	127,307	116,807
Total current assets	381,102	335,702
Plant assets (net)	660,462	531,762
Total assets	$1,041,564	$867,464
Liabilities and Stockholders? Equity
Current liabilities
Accounts payable	$161,895	$147,295
Income taxes payable	44,807	43,307
Total current liabilities	206,702	190,602
Bonds payable	231,462	211,462
Total liabilities	438,164	402,064
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	$1,041,564	$867,464

All sales were on account. Net cash provided by operating activities for 2014 was $230,270. Capital expenditures were $135,890, and cash dividends were $65,491.

Compute the following ratios for 2014.(Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)

(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		%
(l)	Current cash debt coverage		times
(m)	Cash debt coverage		times
(n)	Free cash flow	$

Problem 13-2A The comparative statements of Osborne Company are presented here. OSBORNE COMPANY Income Statements For the Years Ended December 31 2014 Net sales $1,892,435 Cost of goods sold 1,060,435 Gross profit 832,000 Selling and administrative expenses 501,895 Income from operations 330,105 Other expenses and losses Interest expense 23,307 Income before income taxes 306,798 Income tax expense 93,307 Net income $ 213,491 2013 $1,752,395 1,007,895 744,500 480,895 263,605 21,307 242,298 74,307 $ 167,991 OSBORNE COMPANY Balance Sheets December 31 Assets Current assets Cash Debt investments (short-term) Accounts receivable Inventory Total current assets Plant assets (net) Total assets Liabilities 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 2014 2013 $ 60,100 74,000 119,695 127,307 381,102 660,462 $1,041,564 $ 64,200 50,000 104,695 116,807 335,702 531,762 $867,464 $ 161,895 44,807 206,702 231,462 438,164 $147,295 43,307 190,602 211,462 402,064 290,000 313,400 603,400 $1,041,564 300,000 165,400 465,400 $867,464 All sales were on account. Net cash provided by operating activities for 2014 was $230,270. Capital expenditures were $135,890, and cash dividends were $65,491. Compute the following ratios for 2014. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.) (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 % (l) Current cash debt coverage times (m) Cash debt coverage times $ (n) Free cash flow