Reference no: EM132360139
Question
The following are financial statements of Skysong, Inc..
Skysong,Inc.
Income Statement
For the Year Ended December 31, 2017 Net sales $2,236,200
Cost of goods sold 1,023,200
Selling and administrative expenses 921,500
Interest expense 95,500
Income tax expense 70,700
Net income$ 125,300
Skysong, Inc.
Balance Sheet
December 31, 2017 Assets Current assets
Cash$ 77,800
Debt investments 85,700
Accounts receivable (net) 185,400
Inventory 160,500
Total current assets 509,400
Plant assets (net) 586,100
Total assets $1,095,500
Liabilities and Stockholders' Equity Current liabilities
Accounts payable $177,700
Income taxes payable 37,200
Total current liabilities 214,900
Bonds payable 215,600
Total liabilities 430,500
Stockholders' equity
Common stock 360,800
Retained earnings 304,200
Total stockholders' equity 665,000
Total liabilities and stockholders' equity $1,095,500
Additional information: The net cash provided by operating activities for 2017 was $208,500. The cash used for capital expenditures was $102,800. The cash used for dividends was $32,700. The weighted-average number of shares outstanding during the year was 50,000.
(a) Compute the following values and ratios for 2017. (We provide the results from 2016 for comparative purposes.) (Round Current Ratio and Earnings per share to 2 decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
(i) Working capital.(2016: $160,500) (ii) Current ratio.(2016: 1.65:1) (iii) Free cash flow. (2016: $48,700) (iv) Debt to assets ratio. (2016: 31%) (v) Earnings per share. (2016: $3.15)
(i) Working capital $____
(ii) Current ratio _____:1
(iii) Free cash flow $_____
(iv) Debt to assets ratio _____%
(v) Earnings per share $______