Question 5 The comparative statements of Osborne Company are presented here. OSBORNE COMPANY Income

Need your ASSIGNMENT done? Use our paper writing service to score better and meet your deadlines.


Order a Similar Paper Order a Different Paper

Question 5
The
comparative statements of Osborne Company are presented here.

OSBORNE COMPANY
Income Statements
For the Years Ended December 31

2014

2013

Net sales

$1,894,718

$1,754,678

Cost of goods sold

1,062,718

1,010,178

Gross profit

832,000

744,500

Selling and administrative expenses

504,178

483,178

Income from operations

327,822

261,322

Other expenses and losses

Interest expense

23,204

21,204

Income before income taxes

304,618

240,118

Income tax expense

93,204

74,204

Net income

$ 211,414

$ 165,914

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

121,978

106,978

Inventory

127,204

116,704

Total current assets

383,282

337,882

Plant assets (net)

663,297

534,597

Total assets

$1,046,579

$872,479

Liabilities and Stockholders’ Equity

Current liabilities

Accounts payable

$ 164,178

$149,578

Income taxes payable

44,704

43,204

Total current liabilities

208,882

192,782

Bonds payable

234,297

214,297

Total liabilities

443,179

407,079

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

$1,046,579

$872,479

All sales were on account. Net cash provided by operating activities for 2014
was $230,040. Capital expenditures were $136,620, and cash dividends were
$63,414.

Compute the following ratios for 2014.(Round all answers to 2
decimal places, e.g. 1.83 or 12.61%.)

(a)

Earnings per share

$.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>

(b)

Return on common stockholders’ equity

.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>

%

(c)

Return on assets

.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>

%

(d)

Current ratio

.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>

:1

(e)

Accounts receivable turnover

.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>

times

(f)

Average collection period

.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>

days

(g)

Inventory turnover

.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>

times

(h)

Days in inventory

.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>

days

(i)

Times interest earned

.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>

times

(j)

Asset turnover

.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>

times

(k)

Debt to assets

.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>

%

(l)

Current cash debt coverage

.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>

times

(m)

Cash debt coverage

.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>

times

(n)

Free cash flow

$.gif” alt=”http://edugen.wiley.com/edugen/art2/common/pixel.gif”>

Warning

Don’t show
me this message again for the assignment

"Is this question part of your assignment? We can help"

ORDER NOW
Writerbay.net

Do you need help with this or a different assignment? We offer CONFIDENTIAL, ORIGINAL (Turnitin/LopesWrite/SafeAssign checks), and PRIVATE services using latest (within 5 years) peer-reviewed articles. Kindly click on ORDER NOW to receive an A++ paper from our masters- and PhD writers.

Get a 15% discount on your order using the following coupon code SAVE15


Order a Similar Paper Order a Different Paper