Problem 13-2A

The comparative statements of Sunland Company are presented here.

SUNLAND COMPANY Income Statements For the Years Ended December 31 2017 2016

Net sales $1,898,440 $1,758,400

Cost of goods sold 1,066,440 1,013,900

Gross profit 832,000 744,500

Selling and administrative expenses 507,900 486,900

Income from operations 324,100 257,600

Other expenses and losses Interest expense 23,900 21,900

Income before income taxes 300,200 235,700

Income tax expense 93,900 74,900

Net income $ 206,300 $ 160,800

SUNLAND COMPANY Balance Sheets December 31 Assets 2017 2016

Current assets Cash $ 60,100 $ 64,200

Debt investments (short-term) 74,000 50,000

Accounts receivable 125,700 110,700

Inventory 127,900 117,400

Total current assets 387,700 342,300

Plant assets (net) 661,000 532,300

Total assets $1,048,700 $874,600

Liabilities and Stockholders Equity Current liabilities Accounts payable $ 167,900 $153,300

Income taxes payable 45,400 43,900

Total current liabilities 213,300 197,200

Bonds payable 232,000 212,000

Total liabilities 445,300 409,200

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 $1,048,700 $874,600

All sales were on account. Net cash provided by operating activities for 2017 was $236,000. Capital expenditures were $135,000, and cash dividends were $58,300.

Compute the following ratios for 2017. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)

(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 ratio %

(l) Free cash flow $