Question
The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income Statement For the Years Ended December 31 2020 2019 Net sales $1,814,500 $1,750,100
The comparative statements of Wahlberg Company are presented here.
Wahlberg Company Income Statement For the Years Ended December 31 | ||||||
---|---|---|---|---|---|---|
2020 | 2019 | |||||
Net sales | $1,814,500 | $1,750,100 | ||||
Cost of goods sold | 1,012,800 | 976,000 | ||||
Gross profit | 801,700 | 774,100 | ||||
Selling and administrative expenses | 517,800 | 478,400 | ||||
Income from operations | 283,900 | 295,700 | ||||
Other expenses and losses | ||||||
Interest expense | 18,400 | 13,400 | ||||
Income before income taxes | 265,500 | 282,300 | ||||
Income tax expense | 81,372 | 76,500 | ||||
Net income | $ 184,128 | $ 205,800 |
Wahlberg Company Balance Sheets December 31 | ||||||
---|---|---|---|---|---|---|
Assets | 2020 | 2019 | ||||
Current assets | ||||||
Cash | $59,200 | $64,400 | ||||
Debt investments (short-term) | 69,000 | 49,300 | ||||
Accounts receivable | 117,200 | 102,900 | ||||
Inventory | 122,500 | 115,300 | ||||
Total current assets | 367,900 | 331,900 | ||||
Plant assets (net) | 600,800 | 517,100 | ||||
Total assets | $968,700 | $849,000 | ||||
Liabilities and Stockholders Equity | ||||||
Current liabilities | ||||||
Accounts payable | $160,500 | $144,700 | ||||
Income taxes payable | 42,200 | 42,600 | ||||
Total current liabilities | 202,700 | 187,300 | ||||
Bonds payable | 220,000 | 200,000 | ||||
Total liabilities | 422,700 | 387,300 | ||||
Stockholders equity | ||||||
Common stock ($5 par) | 278,000 | 297,400 | ||||
Retained earnings | 268,000 | 164,300 | ||||
Total stockholders equity | 546,000 | 461,700 | ||||
Total liabilities and stockholders equity | $968,700 | $849,000 |
All sales were on account. Net cash provided by operating activities for 2020 was $228,000. Capital expenditures were $144,000, and cash dividends were $80,428. Compute the following ratios for 2020. (Round Earnings per share, Current ratio and Asset turnover to 2 decimal places, e.g. 1.65 or 1.65:1, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%. Use 365 days for calculation.)
(a) | Earnings per share | $enter your answer rounded to 2 decimal places | |||
---|---|---|---|---|---|
(b) | Return on common stockholders equity | enter your answer rounded to 1 decimal place | % | ||
(c) | Return on assets | enter your answer rounded to 1 decimal place | % | ||
(d) | Current ratio | enter your answer rounded to 2 decimal places | :1 | ||
(e) | Accounts receivable turnover | enter your answer rounded to 1 decimal place | times | ||
(f) | Average collection period | enter your answer rounded to 1 decimal place | days | ||
(g) | Inventory turnover | enter your answer rounded to 1 decimal place | times | ||
(h) | Days in inventory | enter your answer rounded to 1 decimal place | days | ||
(i) | Times interest earned | enter your answer rounded to 1 decimal place | times | ||
(j) | Asset turnover | enter your answer rounded to 2 decimal places | times | ||
(k) | Debt to assets ratio | enter your answer rounded to 1 decimal place | % | ||
(l) | Free cash flow | $enter your answer in dollars |
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