Question
The comparative statements of Pharoah Company are presented here. PHAROAH COMPANY Income Statements For the Years Ended December 31 2022 2021 Net sales $1,697,400 $1,575,000
The comparative statements of Pharoah Company are presented here.
| PHAROAH COMPANY Income Statements For the Years Ended December 31 | ||||
|---|---|---|---|---|
| 2022 | 2021 | |||
| Net sales | $1,697,400 | $1,575,000 | ||
| Cost of goods sold | 947,000 | 905,400 | ||
| Gross profit | 750,400 | 669,600 | ||
| Selling and administrative expenses | 450,000 | 431,100 | ||
| Income from operations | 300,400 | 238,500 | ||
| Other expenses and losses | ||||
| Interest expense | 19,800 | 18,000 | ||
| Income before income taxes | 280,600 | 220,500 | ||
| Income tax expense | 84,180 | 66,150 | ||
| Net income | $ 196,420 | $ 154,350 | ||
| PHAROAH COMPANY Balance Sheets December 31 | ||||
|---|---|---|---|---|
| Assets | 2022 | 2021 | ||
| Current assets | ||||
| Cash | $ 54,090 | $ 57,780 | ||
| Debt investments (short-term) | 66,600 | 45,000 | ||
| Accounts receivable | 106,020 | 92,520 | ||
| Inventory | 113,400 | 103,950 | ||
| Total current assets | 340,110 | 299,250 | ||
| Plant assets (net) | 584,100 | 468,270 | ||
| Total assets | $924,210 | $767,520 | ||
| Liabilities and Stockholders Equity | ||||
| Current liabilities | ||||
| Accounts payable | $ 144,000 | $130,860 | ||
| Income taxes payable | 39,150 | 37,800 | ||
| Total current liabilities | 183,150 | 168,660 | ||
| Bonds payable | 198,000 | 180,000 | ||
| Total liabilities | 381,150 | 348,660 | ||
| Stockholders equity | ||||
| Common stock ($5 par) | 261,000 | 270,000 | ||
| Retained earnings | 282,060 | 148,860 | ||
| Total stockholders equity | 543,060 | 418,860 | ||
| Total liabilities and stockholders equity | $924,210 | $767,520 | ||
All sales were on account. Net cash provided by operating activities for 2022 was $198,000. Capital expenditures were $122,400, and cash dividends were $63,220. Compute the following ratios for 2022. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)
| (a) | Earnings per share | $enter earnings per share in dollars | |||
| (b) | Return on common stockholders equity | enter return on common stockholders equity in percentages | % | ||
| (c) | Return on assets | enter return on assets in percentages | % | ||
| (d) | Current ratio | enter current ratio | :1 | ||
| (e) | Accounts receivable turnover | enter accounts receivable turnover in times | times | ||
| (f) | Average collection period | enter average collection period in days | days | ||
| (g) | Inventory turnover | enter inventory turnover in times | times | ||
| (h) | Days in inventory | enter days in inventory | days | ||
| (i) | Times interest earned | enter times interest earned | times | ||
| (j) | Asset turnover | enter asset turnover in times | times | ||
| (k) | Debt to assets ratio | enter debt to assets ratio in percentages | % | ||
| (l) | Free cash flow | $enter free cash flow in dollars |
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Internal Auditing Assurance And Advisory Services
Authors: Kurt R. Reding, Paul J. Sobel, Urton L. Anderson, Michael J. Head, Sridhar Ramamoorti, Mark Salamasick, Cris Riddle
5th Edition
1634541367, 978-1634541367
