The companie Stems UI LAIKI TUUI CUMy are presenlleu veuw. LARKER TOOL COMPANY Income Statement For the Years Ended December 31 2013 2012 Net sales $1,818,500 $1,750,500 Cost of goods sold 1,011,500 996,000 Gross profit 807,000 754,500 Selling and administrative expense 516,000 479,000 Income from operations 291,000 275,500 Other expenses and losses Interest expense 18,000 14,000 Income before income taxes 273,000 261,500 Income tax expense 81,000 77,000 Net income S 192,000 $184,500 LARKER TOOL COMPANY Balance Sheets December 31 Assets 2013 2012 $ 60,100 69,000 117,800 123,000 369,900 600,300 $970,200 $ 64,200 50,000 102,800 115,500 332,500 520,300 $852,800 Current assets Cash Short-term investments Accounts receivable (net) Inventory Total current assets Plant assets (net) Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable Total current liabilitie Bonds payable Total liabilities Stockholders' equity Common stock (5 par) S160,000 43,500 203,500 200,000 403,500 $145,400 42,000 187,400 200,000 387,400 280.000 300,000 S160,000 43,500 203,500 200,000 403,500 $145,400 42.000 187,400 200,000 387,400 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 280,000 300,000 286,700 165,400 566,700 465,400 $970,200 $852,800 All sales were on account. Instructions Compute the following ratios for 2013. (Weighted-average common shares in 2013 were 57,000.) (a) Earnings per share. (b) Return on common stockholders' equity. (c) Return on assets. (d) Current (e) Acid-test. (1) Receivables turnover. (g) Inventory tumover, (h) Times interest eamed. () Asset turnover. (1) Debt to total assets. m P18-3