Question: The comparative statements of Osborne Company are
The comparative statements of Osborne Company are presented here.
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. (h) Days in inventory.
(b) Return on common stockholders’ equity. (i) Times interest earned.
(c) Return on assets. (j) Asset turnover.
(d) Current ratio. (k) Debt to assets.
(e) Accounts receivable turnover. (l) Current cash debt coverage.
(f) Average collection period. (m) Cash debt coverage.
(g) Inventory turnover. (n) Free cash flow.
Transcribed Image Text:
OSBORNE COMPANY Income Statements For the Years Ended December 31 2014 2013 Net sales $1,890,540 $1,750,500 Cost of goods sold 1,058,540 1,006,000 Gross profit Selling and administrative expenses 832,000 500,000 744,500 479,000 Income from operations Other expenses and losses Interest expense 332,000 265,500 22,000 20,000 Income before income taxes 310,000 245,500 Income tax expense 92,000 73,000 Net income $ 218,000 $ 172,500 OSBORNE COMPANY Balance Sheets December 31 Assets 2014 2013 Current assets $ 60,100 $ 64,200 Cash Debt investments (short-term) Accounts receivable Inventory 74,000 117,800 50,000 102,800 126,000 115,500 Total current assets Plant assets (net) 377,900 649,000 332,500 520,300 Total assets $1,026,900 $852,800 Liabilities and Stockholders' Equity Current liabilities $ 160,000 Accounts payable Income taxes payable $145,400 42,000 43,500 Total current liabilities 203,500 220,000 187,400 Bonds payable 200,000 Total liabilities 423,500 387,400 Stockholders' Equity Common stock ($5 par) Retained earnings Total stockholders' equity 290,000 313,400 300,000 165,400 603,400 465,400 Total liabilities and stockholders' equity $1,026,900 $852,800
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