Compute the ratios for 2012 and earnings per share

Assignment Help Financial Accounting

Reference no: EM13180054

The comparative statements of Villa Tool Company are presented below.

VILLA TOOL COMPANY
	Income Statement
	For the Year Ended December 31
		2012	2011
	Net sales	$1,818,500	$1,750,500
	Cost of goods sold	1,011,500	996,000
	Gross profit	807,000	754,500
	Selling and administrative expense	516,000	479,000
	Income from operations	291,000	275,500
	Other expenses and losses
	Interest expense	18,000	14,000
	Income before income taxes	273,000	261,500
	Income tax expense	81,000	77,000
	Net income	$ 192,000	$ 184,500

	VILLA TOOL COMPANY
	Balance Sheets
	December 31
	Assets	2012	2011
	Current assets
	Cash	$ 60,100	$ 64,200
	Short-term investments	69,000	50,000
	Accounts receivable (net)	117,800	102,800
	Inventory	123,000	115,500
	Total current assets	369,900	332,500
	Plant assets (net)	600,300	520,300
	Total assets	$970,200	$852,800

	Liabilities and Stockholders' Equity
	Current liabilities
	Accounts payable	$160,000	$145,400
	Income taxes payable	43,500	42,000
	Total current liabilities	203,500	187,400
	Bonds payable	200,000	200,000
	Total liabilities	403,500	387,400
	Stockholders' equity
	Common stock ($5 par)	280,000	300,000
	Retained earnings	286,700	165,400
	Total stockholders' equity	566,700	465,400
	Total liabilities and stockholders' equity	$970,200	$852,800

Compute the following ratios for 2012. (Weighted average common shares in 2012 were 57,000, and all sales were on account.)

(a) Earnings per share$

(b) Return on common stockholders' equity

(d) Current:1

(e) Acid-test:1

(f) Receivables turnovertimes

(g) Inventory turnovertimes

(h) Times interest earnedtimes

(i) Asset turnovertimes

(j) Debt to total assets

Reference no: EM13180054

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