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The comparative statements of Sheridan Company are presented here.
|
SHERIDAN COMPANY |
||||
|
|
|
2022 |
|
2021 |
|
Net sales |
|
$2,141,400 |
|
$1,995,000 |
|
Cost of goods sold |
|
1,187,000 |
|
1,166,960 |
|
Gross profit |
|
954,400 |
|
828,040 |
|
Selling and administrative expenses |
|
580,000 |
|
555,640 |
|
Income from operations |
|
374,400 |
|
272,400 |
|
Other expenses and losses |
|
|
|
|
|
Interest expense |
|
25,520 |
|
23,200 |
|
Income before income taxes |
|
348,880 |
|
249,200 |
|
Income tax expense |
|
104,664 |
|
74,760 |
|
Net income |
|
$ 244,216 |
|
$ 174,440 |
|
SHERIDAN COMPANY |
||||
|
Assets |
|
2022 |
|
2021 |
|
Current assets |
|
|
|
|
|
Cash |
|
$ 69,716 |
|
$ 74,472 |
|
Debt investments (short-term) |
|
85,840 |
|
58,000 |
|
|
|
136,648 |
|
119,248 |
|
Inventory |
|
146,160 |
|
133,980 |
|
Total current assets |
|
438,364 |
|
385,700 |
|
Plant assets (net) |
|
752,840 |
|
603,548 |
|
Total assets |
|
$1,191,204 |
|
$989,248 |
|
Liabilities and |
|
|
|
|
|
Current liabilities |
|
|
|
|
|
Accounts payable |
|
$ 185,600 |
|
$168,664 |
|
Income taxes payable |
|
50,460 |
|
48,720 |
|
Total current liabilities |
|
236,060 |
|
217,384 |
|
Bonds payable |
|
255,200 |
|
232,000 |
|
Total liabilities |
|
491,260 |
|
449,384 |
|
Stockholders’ equity |
|
|
|
|
|
Common stock ($5 par) |
|
336,400 |
|
348,000 |
|
|
|
363,544 |
|
191,864 |
|
Total stockholders’ equity |
|
699,944 |
|
539,864 |
|
Total liabilities and stockholders’ equity |
|
$1,191,204 |
|
$989,248 |
All sales were on account. Net cash provided by operating activities for 2022 was $255,200. Capital expenditures were $157,760, and cash dividends were $72,536.
QUESTION:
Compute the following ratios for 2022. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)
|
(a) |
|
Earnings per share = Net Income/average shares outstanding |
|
|
|
|
(b) |
|
Return on common stockholders’ equity = Net Income/Average Stockholders Equity |
|
|
% |
|
(c) |
|
Return on assets = Net Income/Average Total Assets |
% |
||
|
(d) |
|
Current assets/current liabliaties |
|
|
:1 |
|
(e) |
|
Accounts receivable turnover = Credit sales/average accounts receivable |
|
|
times |
|
(f) |
|
Average collection period = 365/accounts receivable turnover |
|
|
days |
|
(g) |
|
Inventory turnover = COGS/average inventory |
|
|
times |
|
(h) |
|
Days in inventory = 365/inventory turnover |
|
|
days |
|
(i) |
|
Times interest earned = EBIT/interest expense |
|
|
times |
|
(j) |
|
Asset turnover = net sales/average total assets |
|
|
times |
|
(k) |
|
Debt to assets ratio = Total liabilities/total assets |
|
|
% |
|
(l) |
|
|
|
|
|
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