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[The following information applies to the questions displayed below.] Nabisco Company's balance sheet accounts follow: At December 31 2010 2009 2008 Assets Cash $ 36,229
[The following information applies to the questions displayed below.]
Nabisco Company's balance sheet accounts follow:
At December 31 | 2010 | 2009 | 2008 | |||
Assets | ||||||
Cash | $ | 36,229 | $ | 42,780 | $ | 44,562 |
Accounts receivable, net | 106,073 | 76,377 | 57,087 | |||
Merchandise inventory | 137,408 | 98,929 | 62,038 | |||
Prepaid expenses | 11,548 | 11,003 | 4,903 | |||
Plant assets, net | 335,317 | 311,062 | 272,710 | |||
Total assets | $ | 626,575 | $ | 540,151 | $ | 441,300 |
Liabilities and Equity | ||||||
Accounts payable | $ | 157,577 | $ | 94,024 | $57,087 | |
Long-term notes payable secured by mortgages on plant assets | 116,618 | 127,962 | 99,478 | |||
Common stock, $10 par value | 163,500 | 163,500 | 163,500 | |||
Retained earnings | 188,880 | 154,665 | 121,235 | |||
Total liabilities and equity | $ | 626,575 | $ | 540,151 | $ | 441,300 |
The company's income statements for the years ended December 31, 2010 and 2009, follow:
For Year Ended December 31 | 2010 | 2009 | ||||||
Sales | $ | 685,000 | $ | 557,000 | ||||
Cost of goods sold | $ | 417,850 | $ | 356,265 | ||||
Other operating expenses | 207,282 | 141,971 | ||||||
Interest expense | 8,175 | 8,960 | ||||||
Income taxes | 12,900 | 12,450 | ||||||
Total costs and expenses | 646,207 | 519,646 | ||||||
Net income | $ | 38,793 | $ | 37,354 | ||||
Earnings per share | $ | 2.37 | $ | 2.28 | ||||
Compare the company's long-term risk and capital structure positions at the end of 2010 and 2009 by computing the following ratios.
(c) Times interest earned.
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