Question:
Use the
financial statements for Coleman Company from Problem 13-17B to compute the following for 2015 only by rounding to two decimal points.
In Problem 13-17B, Coleman Companys stock is quoted at $16 per share at December 31, 2015 and 2014. Colemans
financial statements follow.
Questions next page
a. Current ratio
b. Quick (acid-test) ratio
c. Average days to collect accounts receivable, assuming all sales on account
d. Inventory turnover
e. Book value per share of common stock
f. Earnings per share on common stock
g. Price-earnings ratio on common stock
h. Debt to assets ratio
i. Return on investment
j. Return onequity
Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Transcribed Image Text:
COLEMAN COMPANY Balance Sheets As of December 31 (In thousands) 2014 Assets Current assets $ 2,000 4,000 44,000 60,000 1,000 111,000 105,000 1,000 2,000 4.000 3,000 Cash $ 3,000 5,000 47,000 50,000 2,000 107,000 100,000 1,000 3,000 2,000 2,000 Marketable securities at cost which approximates market Accounts receivable, net of allowance for doubtful accounts Inventories, lower of cost or market Prepaid expenses Total current assets Property, plant, and equipment, net of accumulated depreciation Investments Long-term receivables Goodwill and patents, net of accumulated amortization Other assets Total assets $215000 $226,000 Liabilities and Stockholders' Equity Current liabilities $ 3,000 12,000 9,000 1,000 3,000 28,000 50,000 30,000 5,000 113,000 $ 5,000 16,000 11,000 1,000 2,000 35,000 60,000 27,000 4,000 126,000 Notes payable Accounts payable Accrued expenses Income taxes payable Payments due within one year Total current liabilities Long-term debt Deferred income taxes Other liabilities Total liabilities Stockholders' equity 5% cumulative preferred stock, par value $100 per share; $100 liquidating value; authorized 250,000 shares, issued and outstanding 200,000 shares and 5,000,000 shares issued and outstanding Total stockholders' equity 20,000 20,000 Common stock, no par; 10,000,000 shares authorized Retained eanings Total liabilities and stockholders' equity 40,000 42,000 102,000 $215,000 40,000 40,000 100,000 26.000 COLEMAN COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 In thousands) 2015 2014 Net sales $180,000 $150,000 Expenses Cost of goods sold Selling, general, and administrative expenses Other 147,000 20,000 2,000 169,000 11,000 5,000 6,000 40,000 3,000 1,000 42,000 120,000 18,000 2,000 140,000 10,000 4,000 6,000 38,000 3,000 1,000 40,000 Total expenses Income before income taxes Income taxes Net income Retained earnings at beginning of period Less: Dividends on common stock Dividends on preferred stock Retained eamings at end of period