Compute the current cash debt coverage

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Reference no: EM132451147

Problem - The comparative statements of Osborne Company are presented here.

OSBORNE COMPANY Income Statements For the Years Ended December 31


2014

2013

Net sales

$1,899,482

$1,759,442

Cost of goods sold

1,067,482

1,014,942

Gross profit

832,000

744,500

Selling and administrative expenses

508,942

487,942

Income from operations

323,058

256,558

Other expenses and losses



Interest expense

23,720

21,720

Income before income taxes

299,338

234,838

Income tax expense

93,720

74,720

Net income

$ 205,618

$ 160,118

 

OSBORNE COMPANY Balance Sheets December 31

Assets

2014

2013

Current assets

Cash

$ 60,100

$ 64,200

Debt investments (short-term)

74,000

50,000

Accounts receivable

126,742

111,742

Inventory

127,720

117,220

Total current assets

388,562

343,162

Plant assets (net)

662,072

533,372

Total assets

$1,050,634

$876,534

Liabilities and Stockholders' Equity

Current liabilities

Accounts payable

$ 168,942

$154,342

Income taxes payable

45,220

43,720

Total current liabilities

214,162

198,062

Bonds payable

233,072

213,072

Total liabilities

447,234

411,134

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

$1,050,634

$876,534

All sales were on account. Net cash provided by operating activities for 2014 was $245,880. Capital expenditures were $136,060, and cash dividends were $57,618.

Required - Compute the following ratios for 2014.

(a) Earnings per share.

(b) Return on common stockholders' equity.

(c) Return on assets.

(d) Current ratio.

(e) Accounts receivable turnover.

(f) Average collection period.

(g) Inventory turnover.

(h) Days in inventory.

(i) Times interest earned.

(j) Asset turnover.

(k) Debt to assets.

(l) Current cash debt coverage.

(m) Cash debt coverage.

(n) Free cash flow.

Reference no: EM132451147

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