In: Accounting
The comparative statements of Wahlberg Company are presented
here.
Wahlberg Company |
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2020 |
2019 |
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Net sales | $1,813,300 | $1,745,300 | ||||
Cost of goods sold | 1,010,100 | 994,000 | ||||
Gross profit | 803,200 | 751,300 | ||||
Selling and administrative expenses | 512,200 | 481,600 | ||||
Income from operations | 291,000 | 269,700 | ||||
Other expenses and losses | ||||||
Interest expense | 18,700 | 14,000 | ||||
Income before income taxes | 272,300 | 255,700 | ||||
Income tax expense | 82,022 | 77,800 | ||||
Net income | $ 190,278 | $ 177,900 |
Wahlberg Company |
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Assets |
2020 |
2019 |
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Current assets | ||||||
Cash | $59,500 | $64,500 | ||||
Debt investments (short-term) | 70,800 | 50,500 | ||||
Accounts receivable | 117,900 | 101,500 | ||||
Inventory | 123,000 | 115,600 | ||||
Total current assets | 371,200 | 332,100 | ||||
Plant assets (net) | 600,700 | 516,300 | ||||
Total assets | $971,900 | $848,400 | ||||
Liabilities and Stockholders’ Equity |
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Current liabilities | ||||||
Accounts payable | $159,000 | $144,100 | ||||
Income taxes payable | 42,200 | 41,200 | ||||
Total current liabilities | 201,200 | 185,300 | ||||
Bonds payable | 220,000 | 200,000 | ||||
Total liabilities | 421,200 | 385,300 | ||||
Stockholders’ equity | ||||||
Common stock ($5 par) | 276,800 | 299,800 | ||||
Retained earnings | 273,900 | 163,300 | ||||
Total stockholders’ equity | 550,700 | 463,100 | ||||
Total liabilities and stockholders’ equity | $971,900 | $848,400 |
All sales were on account. Net cash provided by operating
activities for 2020 was $216,000. Capital expenditures were
$132,000, and cash dividends were $79,678.
Compute the following ratios for 2020. (Round Earnings
per share, Current ratio and Asset turnover to 2 decimal places,
e.g. 1.65 or 1.65:1, and all other answers to 1 decimal place, e.g.
6.8 or 6.8%. Use 365 days for calculation.)
(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 | $ |
earnings per share | (net income – preferred dividend)/shares outstanding |
2020 ($) | |
net income | 190278 |
preferred dividend | 0 |
shares outstanding | 55360 |
earnings per share | 3.44 |
return on common stockholders equity | (net income – preferred dividend)/average common stockholders equity |
2020 ($) | |
net income | 190278 |
preferred dividend | 0 |
opening stockholders equity | 463100 |
closing stockholders equity | 550700 |
average stockholders equity | 506900 |
return on common stockholders equity | 37.5% |
return on assets | net income / average total assets |
2020 ($) | |
net income | 190278 |
opening total assets | 848400 |
closing total assets | 971900 |
average total assets | 910150 |
return on assets | 20.9% |
current ratio | current assets / current liabilities |
2020 ($) | |
total current assets | 371200 |
total current liabilities | 332100 |
current ratio | 1.12 |
accounts receivable turnover | Sales / average accounts receivable |
2020 ($) | |
sales | 1813300 |
opening accounts receivable | 101500 |
closing accounts receivable | 117900 |
average accounts receivable | 109700 |
accounts receivable turnover | 16.5 |
average collection period | 365 days / accounts receivable turnover |
2020 ($) | |
accounts receivable turnover | 16.5 |
average collection period | 22.1 |
inventory turnover | cost of goods sold / average inventory |
2020 ($) | |
cost of goods sold | 1010100 |
opening inventory | 115600 |
closing inventory | 123000 |
average inventory | 119300 |
inventory turnover | 8.5 |
days in inventory | 365 days / inventory turnover |
2020 ($) | |
inventory turnover | 8.5 |
days in inventory | 42.9 |