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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

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

$1,895,999

$1,755,959

Cost of goods sold

1,063,999

1,011,459

Gross profit

832,000

744,500

Selling and administrative expenses

505,459

484,459

Income from operations

326,541

260,041

Other expenses and losses

Interest expense

23,583

21,583

Income before income taxes

302,958

238,458

Income tax expense

93,583

74,583

Net income

$ 209,375

$ 163,875

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

123,259

108,259

Inventory

127,583

117,083

Total current assets

384,942

339,542

Plant assets (net)

663,905

535,205

Total assets

$1,048,847

$874,747

Liabilities and Stockholders Equity

Current liabilities

Accounts payable

$ 165,459

$150,859

Income taxes payable

45,083

43,583

Total current liabilities

210,542

194,442

Bonds payable

234,905

214,905

Total liabilities

445,447

409,347

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

$1,048,847

$874,747

All sales were on account. Net cash provided by operating activities for 2014 was $235,290. Capital expenditures were $136,100, and cash dividends were $61,375. 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

$

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