Problem 9-2 The comparative statements of Sheridan Company are presented here. SHERIDAN COMPANY Income Statements For the Years Ended December 31 2017 Net sales $1,899,540 Cost of goods sold 1,067,540 Gross profit 832,000 Selling and administrative expenses 509,000 Income from operations 323,000 Other expenses and losses Interest expense 23,600 Income before income taxes 299,400 93,600 Income tax expense $ 205,800 Net income 2016 $1,759,500 1,015,000 744,500 488,000 256,500 21,600 234,900 74,600 $ 160,300 SHERIDAN COMPANY SHERIDAN COMPANY Balance Sheets December 31 Assets 2017 2016 Current assets Cash Debt investments (short-term) Accounts receivable $ 60,100 74,000 126,800 127,600 388,500 660,000 $1,048,500 $ 64,200 50,000 111,800 117,100 343,100 531,300 Inventory Total current assets Plant assets (net) Total assets $874,400 $ 169,000 45,100 214,100 231,000 Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock ($5 par) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $154,400 43,600 198,000 211,000 409,000 445,100 290,000 313,400 300,000 165,400 465,400 $874,400 503,400 $1,048,500 Total liabilities and stockholders' equity $1,048,500 $874,400 All sales were on account. Net cash provided by operating activities for 2017 was $237,000. Capital expenditures we Compute the following ratios for 2017. (Round current ratio, earnings per share and asset turnover to 2 deci 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 times (9) Inventory turnover days (h) Days in inventory times (i) Times interest earned times G) Asset turnover % (k) Debt to assets ratio (1) Free cash flow $ 874,400 es for 2017 was $237,000. Capital expenditures were $136,000, and cash dividends were $57,800. arnings per share and asset turnover to 2 decimal places, eg 1.83 and all other answers to 1 decimal place, c.c. 1.8 or 2.5%. Use mes ays imes days times times