Question

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The comparative statements of Sandhill Co. are presented here.

SANDHILL CO. Income Statements For the Years Ended December 31
		2017		2016
Net sales		$1,896,740		$1,756,700
Cost of goods sold		1,064,740		1,012,200
Gross profit		832,000		744,500
Selling and administrative expenses		506,200		485,200
Income from operations		325,800		259,300
Other expenses and losses
Interest expense		23,200		21,200
Income before income taxes		302,600		238,100
Income tax expense		93,200		74,200
Net income		$ 209,400		$ 163,900

SANDHILL CO. Balance Sheets December 31
Assets		2017		2016
Current assets
Cash		$ 60,100		$ 64,200
Debt investments (short-term)		74,000		50,000
Accounts receivable		124,000		109,000
Inventory		127,200		116,700
Total current assets		385,300		339,900
Plant assets (net)		664,000		535,300
Total assets		$1,049,300		$875,200
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$ 166,200		$151,600
Income taxes payable		44,700		43,200
Total current liabilities		210,900		194,800
Bonds payable		235,000		215,000
Total liabilities		445,900		409,800
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		$1,049,300		$875,200

All sales were on account. Net cash provided by operating activities for 2017 was $229,000. Capital expenditures were $137,000, and cash dividends were $61,400.

Compute the following ratios for 2017. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)

(a)		Earnings per share		$Enter earnings per share in dollars
(b)		Return on common stockholders’ equity		Enter return on common stockholders' equity in percentages	%
(c)		Return on assets		Enter return on assets in percentages	%
(d)		Current ratio		Enter the current ratio value	:1
(e)		Accounts receivable turnover		Enter accounts receivable turnover in times	times
(f)		Average collection period		Enter average collection period in days	days
(g)		Inventory turnover		Enter inventory turnover in times	times
(h)		Days in inventory		Enter the number of days in inventory	days
(i)		Times interest earned		Enter times interest earned	times
(j)		Asset turnover		Enter asset turnover in times	times
(k)		Debt to assets ratio		Enter debt to assets ratio in percentages	%
(l)		Free cash flow		$Enter free cash flow in dollars

Answer 1