Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The comparative statements of Ivanhoe Company are presented here. IVANHOE COMPANY Income Statements For the Years Ended December 31 2022 2021 Net sales $1,902,210 $1,756,900

The comparative statements of Ivanhoe Company are presented here.

IVANHOE COMPANY Income Statements For the Years Ended December 31

2022

2021

Net sales

$1,902,210

$1,756,900

Cost of goods sold

1,062,705

1,012,400

Gross profit

839,505

744,500

Selling and administrative expenses

506,400

485,400

Income from operations

333,105

259,100

Other expenses and losses

Interest expense

23,400

21,400

Income before income taxes

309,705

237,700

Income tax expense

93,175

74,400

Net income

$ 216,530

$ 163,300

IVANHOE COMPANY Balance Sheets December 31

Assets

2022

2021

Current assets

Cash

$ 61,079

$ 64,200

Debt investments (short-term)

74,000

50,000

Accounts receivable

124,200

109,200

Inventory

127,400

116,900

Total current assets

386,679

340,300

Plant assets (net)

659,000

530,300

Total assets

$1,045,679

$870,600

Liabilities and Stockholders Equity

Current liabilities

Accounts payable

$ 166,400

$151,800

Income taxes payable

44,900

43,400

Total current liabilities

211,300

195,200

Bonds payable

230,000

210,000

Total liabilities

441,300

405,200

Stockholders equity

Common stock ($5 par)

290,000

300,000

Retained earnings

314,379

165,400

Total stockholders equity

604,379

465,400

Total liabilities and stockholders equity

$1,045,679

$870,600

All sales were on account. Net cash provided by operating activities for 2022 was $223,575. Capital expenditures were $137,000, and cash dividends were $67,551. Compute the following ratios for 2022. (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 the calculation.)

(a)

Earnings per share

$enter earnings per share in dollars rounded to 2 decimal places

(b)

Return on common stockholders equity

enter Return on common stockholders equity in percentages rounded to 1 decimal place

%

(c)

Return on assets

enter Return on assets in percentages rounded to 1 decimal place

%

(d)

Current ratio

enter Current ratio rounded to 2 decimal places

:1

(e)

Accounts receivable turnover

enter a number of Accounts receivable turnover in times rounded to 1 decimal place

times

(f)

Average collection period

enter a number of Average collection period in days rounded to 1 decimal place

days

(g)

Inventory turnover

enter a number of Inventory turnover in times rounded to 1 decimal place

times

(h)

Days in inventory

enter a number of days in inventory rounded to 1 decimal place

days

(i)

Times interest earned

enter a number of times interest earned rounded to 1 decimal place

times

(j)

Asset turnover

enter a number of Asset turnover in times rounded to 2 decimal places

times

(k)

Debt to assets ratio

enter Debt to assets ratio in percentages rounded to 1 decimal place

%

(l)

Free cash flow

$enter Free cash flow in dollars

Please help me and explain me why.. Thank you

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles

Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

9th Edition

978-0470533475

Students also viewed these Accounting questions