Question
The comparative statements of Sheridan Company are presented here. SHERIDAN COMPANY Income Statements For the Years Ended December 31 2017 2016 Net sales $1,899,640 $1,759,600
The comparative statements of Sheridan Company are presented here.
SHERIDAN COMPANY
Income Statements
For the Years Ended December 31
2017
2016
Net sales
$1,899,640
$1,759,600
Cost of goods sold
1,067,640
1,015,100
Gross profit
832,000
744,500
Selling and administrative expenses
509,100
488,100
Income from operations
322,900
256,400
Other expenses and losses
Interest expense
24,100
22,100
Income before income taxes
298,800
234,300
Income tax expense
94,100
75,100
Net income
$204,700
$159,200
SHERIDAN COMPANY
Balance Sheets
December 31
Assets
2017
2016
Current assets
Cash
$60,100
$64,200
Debt investments (short-term)
74,000
50,000
Accounts receivable
126,900
111,900
Inventory
128,100
117,600
Total current assets
389,100
343,700
Plant assets (net)
660,000
531,300
Total assets
$1,049,100
$875,000
Liabilities and Stockholders' Equity
Current liabilities
Accounts payable
$169,100
$154,500
Income taxes payable
45,600
44,100
Total current liabilities
214,700
198,600
Bonds payable
231,000
211,000
Total liabilities
445,700
409,600
Stockholders' equity
Common stock ($5 par)
290,000
300,000
Retained earnings
313,400
165,400
Total stockholders' equity
603,400
465,400
Total liabilities and stockholders' equity
$1,049,100
$875,000
All sales were on account. Net cash provided by operating activities for 2017 was $231,000. Capital expenditures were $136,000, and cash dividends were $56,700.
Compute the following ratios for 2017. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)
(a)Earnings per share$
Enter earnings per share in dollars
(b)Return on common stockholders' equityEnter return on common stockholders' equity in percentages
%(c)Return on assetsEnter return on assets in percentages
%(d)Current ratioEnter the current ratio value
:1(e)Accounts receivable turnoverEnter accounts receivable turnover in times
times(f)Average collection periodEnter average collection period in days
days(g)Inventory turnoverEnter inventory turnover in times
times(h)Days in inventoryEnter the number of days in inventory
days(i)Times interest earnedEnter times interest earned
times(j)Asset turnoverEnter asset turnover in times
times(k)Debt to assets ratioEnter debt to assets ratio in percentages
%(l)Free cash flow$
Enter free cash flow in dollars
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Practicing Financial Planning
Authors: Sid Mittra, Anandi P Sahu, Brian Fischer
12th Edition
9386042851, 9789386042859
