Problem 19-1

Use the financial statements of Heifer Sports Inc. to find the information below for Heifer. (Use 365 days a year. Round all answers to 2 decimal places except $ amounts.)

Income Statement	2017
Sales	$	5,770,000
Cost of goods sold		3,055,000
Depreciation		303,500
Selling & admin. expenses		1,625,000
EBIT	$	786,500
Interest expense		176,000
Taxable income	$	610,500
Taxes		278,500
Net income	$	332,000

Balance Sheet, Year-End	2017				2016
Assets
Cash	$	40,500			$	98,000
Accounts receivable		586,000				1,700,200
Inventory		435,100				1,182,700
Total current assets	$	1,061,600			$	2,980,900
Fixed assets		2,805,000				6,990,000
Total assets	$	3,866,600			$	9,970,900
Liabilities and Stockholders' Equity
Accounts payable	$	311,200			$	1,218,000
Short-term debt		506,000				1,497,300
Total current liabilities	$	817,200			$	2,715,300
Long-term bonds		1,706,300				5,984,500
Total liabilities	$	2,523,500			$	8,699,800
Common stock	$	314,300			$	314,300
Retained earnings		1,028,800				956,800
Total stockholders' equity	$	1,343,100			$	1,271,100
Total liabilities and stockholders' equity	$	3,866,600			$	9,970,900

Problem 19-1 Use the financial statements of Heifer Sports Inc. to find the information below for Heifer. (Use 365 days a year. Round all answers to 2 decimal places except $ amounts.) Income Statement Sales Cost of goods sold Depreciation Selling & admin. expenses EBIT Interest expense Taxable income Taxes Net income 2017 $ 5,770,000 3,055,000 303,500 1,625,000 $ 786,500 176,000 $ 610,500 278,500 $ 332,000 2017 2016 $ 40,500 586,000 435, 100 $ 1,061,600 2,805,000 $ 3,866,600 $ 98,000 1,700, 200 1,182,700 $ 2,980,900 6,990,000 $ 9,970,900 Balance Sheet, Year-End Assets Cash Accounts receivable Inventory Total current assets Fixed assets Total assets Liabilities and Stockholders' Equity Accounts payable Short-term debt Total current liabilities Long-term bonds Total liabilities Common stock Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 311,200 506,000 $ 817,200 1,706,300 $ 2,523,500 $ 314,300 1,028,800 $ 1,343,100 $ 3,866,600 $ 1,218,000 1,497,300 $ 2,715,300 5,984,500 $ 8,699,800 $ 314,300 956,800 $ 1,271,100 $ 9,970,900 3.77 1.88 days a. Inventory turnover ratio in 2017 b. Debt/equity ratio in 2017 c. Cash flow from operating activities in 2017 d. Average collection period e. Asset turnover ratio f. Interest coverage ratio g. Operating profit margin n. Return on equity j. Compound leverage ratio k. Net cash provided by operating activities 4.47 13.63% %