Compute the following ratios for 2014

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Reference no: EM13496090

The comparative statements of Osborne Company are presented here.

OSBORNE COMPANY
Income Statements
For the Years Ended December 31



2014


2013

Net sales


$1,896,390


$1,756,350

Cost of goods sold


1,064,390


1,011,850

Gross profit


832,000


744,500

Selling and administrative expenses


505,850


484,850

Income from operations


326,150


259,650

Other expenses and losses





   Interest expense


23,785


21,785

Income before income taxes


302,365


237,865

Income tax expense


93,785


74,785

Net income


$ 208,580


$ 163,080

 

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


123,650


108,650

   Inventory


127,785


117,285

     Total current assets


385,535


340,135

Plant assets (net)


662,341


533,641

Total assets


$1,047,876


$873,776

Liabilities and Stockholders' Equity





Current liabilities





   Accounts payable


$ 165,850


$151,250

   Income taxes payable


45,285


43,785

     Total current liabilities


211,135


195,035

Bonds payable


233,341


213,341

     Total liabilities


444,476


408,376

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


$1,047,876


$873,776


All sales were on account. Net cash provided by operating activities for 2014 was $241,920. Capital expenditures were $136,400, and cash dividends were $60,580.

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: EM13496090

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