FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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The comparative statements of Crane Company are presented here.

Crane Company
Income Statement
For the Years Ended December 31
   
2022
 
2021
Net sales
  $1,817,500     $1,753,100  
Cost of goods sold
  1,008,600     978,000  
Gross profit
  808,900     775,100  
Selling and administrative expenses
  519,200     480,800  
Income from operations
  289,700     294,300  
Other expenses and losses
           
   Interest expense
  18,900     14,100  
Income before income taxes
  270,800     280,200  
Income tax expense
  81,512     78,000  
Net income
  $ 189,288     $ 202,200  

 

Crane Company
Balance Sheets
December 31
Assets
 
2022
 
2021
Current assets
           
    Cash
  $60,300     $64,500  
    Debt investments (short-term)
  68,300     50,500  
    Accounts receivable (net)
  116,100     101,000  
    Inventory
  122,700     115,200  
      Total current assets
  367,400     331,200  
Plant assets (net)
  603,300     521,600  
Total assets
  $970,700     $852,800  
Liabilities and Stockholders’ Equity
           
Current liabilities
           
    Accounts payable
  $161,000     $145,900  
    Income taxes payable
  43,100     41,900  
      Total current liabilities
  204,100     187,800  
Bonds payable
  220,000     200,000  
      Total liabilities
  424,100     387,800  
Stockholders’ equity
           
    Common stock ($5 par)
  276,200     297,400  
    Retained earnings
  270,400     167,600  
      Total stockholders’ equity
  546,600     465,000  
Total liabilities and stockholders’ equity
  $970,700     $852,800  


All sales were on credit. Net cash provided by operating activities for 2022 was $240,000. Capital expenditures were $146,000, and cash dividends paid were $86,488.

Compute the following ratios for 2022. (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)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(i)
(j)
(k)
(1)
here to search
Earnings per share
Return on common stockholders' equity
Return on assets
Current ratio
Accounts receivable turnover
Average collection period
Inventory turnover
Days in inventory
Times interest earned
Asset turnover
Debt to assets ratio
Free cash flow
с
é
$
LA
$
LA
%
%
:1
times
days
times
days
times
times
%
expand button
Transcribed Image Text:Compute the following ratios for 2022. (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) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (1) here to search Earnings per share Return on common stockholders' equity Return on assets Current ratio Accounts receivable turnover Average collection period Inventory turnover Days in inventory Times interest earned Asset turnover Debt to assets ratio Free cash flow с é $ LA $ LA % % :1 times days times days times times %
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