Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The comparative statements of Oriole Company are presented here. ORIOLE COMPANY Income Statements For the Years Ended December 31 2027 2026 Net sales $1,895,280
The comparative statements of Oriole Company are presented here. ORIOLE COMPANY Income Statements For the Years Ended December 31 2027 2026 Net sales $1,895,280 $1,759,400 Cost of goods sold 1,063,575 1,014,900 Gross profit 831,705 744,500 Selling and administrative expenses 508,900 487,900 Income from operations 322,805 256,600 Other expenses and losses Interest expense 23,500 21,500 Income before income taxes 299,305 235,100 Income tax expense 93,395 74,500 Net income $205,910 $160,600 Assets ORIOLE COMPANY Balance Sheets December 31 2027 2026 Current assets Cash $ 61,098 $ 64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable (net) 126,700 111,700 Inventory 127,500 117,000 Total current assets 389,298 342,900 Plant assets (net) 662,000 533,300 Total assets $1,051,298 $876,200 Liabilities and Stockholders' Equity ORIOLE COMPANY Balance Sheets December 31 2027 2026 Assets Current assets Cash $ 61,098 $64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable (net) 126,700 111,700 Inventory 127,500 117,000 Total current assets 389,298 342,900 Plant assets (net) 662,000 533,300 Total assets $1,051,298 $876,200 Liabilities and Stockholders' Equity Current liabilities Accounts payable $ 168,900 $154,300 Income taxes payable 45,000 43,500 Total current liabilities 213,900 197,800 Bonds payable 233,000 213,000 Total liabilities 446,900 410,800 Stockholders' equity Common stock ($5 par) 290,000 300,000 Retained earnings 314,398 165,400 Total stockholders' equity 604,398 465,400 Total liabilities and stockholders' equity $1,051,298 $876,200 All sales were on credit. Net cash provided by operating activities for 2027 was $242,903. Capital expenditures were $135,000, and cash dividends paid were $56,912. Compute the following ratios for 2027. (Round current ratio, earnings per share and asset turnover to 2 decimal places, eg 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 (e) Accounts receivable turnover (f) Average collection period (g) Inventory turnover (h) Days in inventory (i) Times interest earned W Asset turnover (k) Debt to assets ratio (1) Free cash flow $ % % :1 times days times days times times %
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started