Reference no: EM132354410
Question
The following are financial statements of Blue Spruce
Corp..
Blue Spruce Corp.
Income Statement
For the Year Ended December 31, 2017
Net sales $2,236,800
Cost of goods sold 1,028,600
Selling and administrative expenses 918,600
Interest expense 88,300
Income tax expense 70,210
Net income $ 131,090
Blue Spruce Corp.
Balance Sheet
December 31, 2017
Assets
Current assets Cash$ 78,400
Debt investments85,210
Accounts receivable (net)189,600
Inventory162,400
Total current assets515,610
Plant assets (net)591,500
Total assets$ 1,107,110
Liabilities and Stockholders' EquityCurrent liabilities Accounts payable$ 178,300
Income taxes payable36,710
Total current liabilities215,010
Bonds payable219,800
Total liabilities434,810
Stockholders' equity Common stock366,200
Retained earnings306,100
Total stockholders' equity672,300
Total liabilities and stockholders' equity$1,107,110
Additional information: The net cash provided by operating activities for 2017 was $209,100. The cash used for capital expenditures was $108,200. The cash used for dividends was $32,210. 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)