Need accounting help with Internal Control and Cash
Place your order today and enjoy professional academic writing services—From simple class assignments to dissertations. Give us a chance to impress you.
Order a Similar Paper
Order a Different Paper
P13-2A
Save your time - order a paper!
Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines
Order Paper NowThe comparative statements of Osborne Company are presented here.
Compute ratios from balance sheets and income statements.
OSBORNE COMPANY
Income Statements
For the Years Ended December 31
|
||
|
2014
|
2013
|
Net
|
$1,890,540
|
$1,750,500
|
Cost
|
1,058,540
|
1,006,000
|
Gross
|
832,000
|
744,500
|
Selling
|
500,000
|
479,000
|
Income
|
332,000
|
265,500
|
Other
|
|
|
Interest
|
22,000
|
20,000
|
Income
|
310,000
|
245,500
|
Income
|
92,000
|
73,000
|
Net
|
$ 218,000
|
$ 172,500
|
OSBORNE COMPANY
Balance Sheets
December 31
|
||
Assets
|
2014
|
2013
|
Current
|
|
|
Cash
|
$ 60,100
|
$ 64,200
|
Debt
|
74,000
|
50,000
|
Accounts
|
117,800
|
102,800
|
Inventory
|
126,000
|
115,500
|
Total
|
377,900
|
332,500
|
Plant
|
649,000
|
520,300
|
Total
|
$1,026,900
|
$852,800
|
Liabilities and Stockholders’ Equity
|
|
|
Current
|
|
|
Accounts
|
$ 160,000
|
$145,400
|
Income
|
43,500
|
42,000
|
Total
|
203,500
|
187,400
|
Bonds
|
220,000
|
200,000
|
Total
|
423,500
|
387,400
|
Stockholders’
|
|
|
Common
|
290,000
|
300,000
|
Retained
|
313,400
|
165,400
|
Total
|
603,400
|
465,400
|
Total
|
$1,026,900
|
$852,800
|
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