Question

The comparative statements of Wildhorse Co. are presented here.

WILDHORSE CO. Income Statements For the Years Ended December 31
		2022		2021
Net sales		$2,289,400		$2,135,000
Cost of goods sold		1,267,000		1,247,440
Gross profit		1,022,400		887,560
Selling and administrative expenses		620,000		593,960
Income from operations		402,400		293,600
Other expenses and losses
Interest expense		27,280		24,800
Income before income taxes		375,120		268,800
Income tax expense		112,536		80,640
Net income		$ 262,584		$ 188,160

WILDHORSE CO. Balance Sheets December 31
Assets		2022		2021
Current assets
Cash		$ 74,524		$ 79,608
Debt investments (short-term)		91,760		62,000
Accounts receivable		146,072		127,472
Inventory		156,240		143,220
Total current assets		468,596		412,300
Plant assets (net)		804,760		645,172
Total assets		$1,273,356		$1,057,472
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$ 198,400		$180,296
Income taxes payable		53,940		52,080
Total current liabilities		252,340		232,376
Bonds payable		272,800		248,000
Total liabilities		525,140		480,376
Stockholders’ equity
Common stock ($5 par)		359,600		372,000
Retained earnings		388,616		205,096
Total stockholders’ equity		748,216		577,096
Total liabilities and stockholders’ equity		$1,273,356		$1,057,472

All sales were on account. Net cash provided by operating activities for 2022 was $272,800. Capital expenditures were $168,640, and cash dividends were $79,064.

Compute the following ratios for 2022. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)

(a)		Earnings per share			$
(b)		Return on common stockholders’ equity			%
(c)		Return on assets			%
(d)		Current ratio			:1
(e)		Accounts receivable turnover			times
(f)		Average collection period			days
(g)		Inventory turnover			times
(h)		Days in inventory			days
(i)		Times interest earned			times
(j)		Asset turnover			times
(k)		Debt to assets ratio			%
(l)		Free cash flow

Answer 1