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Problem 14-2A (Video) The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income Statement For the Years Ended December 31 2020 2019 Net

Problem 14-2A (Video)

The comparative statements of Wahlberg Company are presented here.

Wahlberg Company Income Statement For the Years Ended December 31

2020

2019

Net sales $1,815,700 $1,749,500
Cost of goods sold 1,011,000 981,000
Gross profit 804,700 768,500
Selling and administrative expenses 515,000 477,600
Income from operations 289,700 290,900
Other expenses and losses
Interest expense 19,000 14,300
Income before income taxes 270,700 276,600
Income tax expense 80,521 76,700
Net income $ 190,179 $ 199,900

Wahlberg Company Balance Sheets December 31

Assets

2020

2019

Current assets
Cash $60,900 $63,800
Debt investments (short-term) 68,900 51,000
Accounts receivable 116,700 102,300
Inventory 123,800 115,700
Total current assets 370,300 332,800
Plant assets (net) 600,600 517,800
Total assets $970,900 $850,600

Liabilities and Stockholders Equity

Current liabilities
Accounts payable $159,900 $144,200
Income taxes payable 44,000 42,600
Total current liabilities 203,900 186,800
Bonds payable 220,000 200,000
Total liabilities 423,900 386,800
Stockholders equity
Common stock ($5 par) 279,200 297,100
Retained earnings 267,800 166,700
Total stockholders equity 547,000 463,800
Total liabilities and stockholders equity $970,900 $850,600

All sales were on account. Net cash provided by operating activities for 2020 was $245,000. Capital expenditures were $131,000, and cash dividends were $89,079. Compute the following ratios for 2020. (Round Earnings per share, Current ratio and Asset turnover to 2 decimal places, e.g. 1.65 or 1.65:1, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%. Use 365 days for calculation.)

(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 $

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