S Question 9 The comparative statements of Sunland Company are presented here. 2016 SUNLAND COMPANY Income Statements For the Years Ended December 31 2017 Net sales $1,895,540 Cost of goods sold 1,063,540 Gross profit 832,000 Selling and administrative expenses 505,000 Income from operations 327,000 Other expenses and losses Interest expense 23,100 Income before income taxes 303,900 Income tax expense 93,100 Net income $ 210,800 $1,755,500 1,011,000 744,500 484,000 260,50h 21,100 239,400 74,100 $ 165,300 SUNLAND COMPANY Balance Sheets December 31 2017 2016 Assets Current assets Cash Debt investments (short-term) Accounts receivable Inventory Total current assets Plant assets (net) $ 60,100 74,000 122,800 127,100 384,000 662,000 $1,046,000 $ 64,200 50,000 107,800 116,600 338,600 533,300 $871,900 Total assets Liabilities and Stockholders' Equity US Kimmel, Survey of Accounting, le Time: 02:31 PM / Remaining: 35 min. TUI LULILULU ES 662,000 $1,046,000 JU, 533,300 $871,900 Plant assets (net) Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Total liabilities $ 165,000 44,600 209,600 233,000 442,600 $150,400 43,100 193,500 213,000 406,500 Stockholders' equity Common stock ($5 par) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 290,000 313,400 603,400 $1,046,000 300,000 165,400 465,400 $871,900 All sales were on account. Net cash provided by operating activities for 2017 was $235,000. Capital expen Compute the following ratios for 2017. (Round current ratio, earnings per share and asset turnover 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 (0) Average collection period days (9) Inventory turnover times (h) Days in inventory davs hel, Survey of Accounting, le 02:31 PM / Remaining: 34 min. Total stockholders' equity 603,400 Total liabilities and stockholders' equity 51,046,000 465.400 1871.00 All sales were on account. Net cash provided by operating activities for 2017 was $235.000.- Compute the following ratios for 2017. (Round current ratio, earnings per share and state 365 days in calculation) (a) Earnings per share (b) Return on common stockholders' equity (c) Return on assets (d) Current ratio (e) Accounts receivable turnover (1) Average collection period days (9) Inventory turnover time (h) Days in inventory days (1) Times interest earned times 6) Asset turnover times (k) Debt to assets ratio (1) Free cash flow Click if you would like to Show Work for this question: Open Show Work II ch
