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P13-2A
The comparative statements of Osborne Company are presented here.
Compute ratios from balance sheets and income statements.
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OSBORNE COMPANY
Income Statements
For the Years Ended December 31
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||
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2014
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2013
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Net
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$1,890,540
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$1,750,500
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|
Cost
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1,058,540
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1,006,000
|
|
Gross
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832,000
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744,500
|
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Selling
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500,000
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479,000
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|
Income
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332,000
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265,500
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|
Other
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|
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Interest
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22,000
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20,000
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Income
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310,000
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245,500
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|
Income
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92,000
|
73,000
|
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Net
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$ 218,000
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$ 172,500
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OSBORNE COMPANY
Balance Sheets
December 31
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Assets
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2014
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2013
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Current
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|
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Cash
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$ 60,100
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$ 64,200
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Debt
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74,000
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50,000
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Accounts
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117,800
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102,800
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Inventory
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126,000
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115,500
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Total
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377,900
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332,500
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Plant
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649,000
|
520,300
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|
Total
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$1,026,900
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$852,800
|
|
Liabilities and Stockholders’ Equity
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|
|
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Current
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|
|
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Accounts
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$ 160,000
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$145,400
|
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Income
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43,500
|
42,000
|
|
Total
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203,500
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187,400
|
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Bonds
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220,000
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200,000
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Total
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423,500
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387,400
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Stockholders’
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|
|
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Common
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290,000
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300,000
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Retained
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313,400
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165,400
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Total
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603,400
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465,400
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Total
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$1,026,900
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$852,800
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All sales were on account. Net cash provided by operating activities for 2014 was $220,000. Capital expenditures were
$136,000, and cash dividends were $70,000.
Instructions
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
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