Problem 9-2 The comparative statements of Cullumber Company are presented here. CULLUMBER COMPANY Income Statements For the Years Ended December 31 2017 2016 Net sales $1,897,840 1,065,840 $1,757,800 1,013,300 Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses 832,000 507,300 744,500 486,300 324,700 258,200 Interest expense 24,100 22,100 Income before income taxes 300,600 236,100 75,100 Income tax expense 94,100 Net income $ 206,500 $ 161,000 CULLUMBER COMPANY Balance Sheets December 31 Assets 2017 2016 Current assets Cash Debt investments (short-term) $ 60,100 74,000 125,100 128,100 $ 64,200 50,000 110,100 117,600 Accounts receivable Inventory Total current assets 387,300 662,000 341,900 533,300 Plant assets (net) Total assets $1,049,300 $875,200 Liabilities and Stockholders' Equity Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable $ 167,300 45,600 $152,700 44,100 Total current liabilities 212,900 233,000 196,800 213,000 Bonds payable Total liabilities 445,900 409,800 Stockholders' equity Common stock ($5 par) Retained earnings Total stockholders' equity 290,000 313,400 300,000 165,400 465,400 603,400 Total liabilities and stockholders' equity $1,049,300 $875,200 All sales were on account. Net cash provided by operating activities for 2017 was $224,000. Capital expenditures were $137,000, and cash dividends were $58,500. Compute the following ratios for 2017. (Round current ratio, earnings per share and asset turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%. Use 365 days in 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 All sales were on account. Net cash provided by operating activities for 2017 was $224,000. Capital expenditures were $137,000, and cash dividends were $58,500. Compute the following ratios for 2017. (Round current ratio, earnings per share and asset turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 2.5%. Use 365 days in 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 % (1) Free cash flow