The comparative statements of Wildhorse Co. are presented here: WILDHORSE CO. Income Statements For the Years Ended December 31     2022   2021 Net sales   $1,892,340   $1,752,300 Cost of goods sold   1,060,340   1,007,800 Gross profit   832,000   744,500 Selling and administrative expenses   501,800   480,800 Income from operations   330,200   263,700 Other expenses and losses            Interest expense   23,700   21,700 Income before income taxes   306,500   242,000 Income tax expense   93,700   74,700 Net income   $212,800   $167,300   WILDHORSE CO. Balance Sheets December 31 Assets   2022   2021 Current assets            Cash   $60,100   $64,200    Debt investments (short-term)   74,000   50,000    Accounts receivable (net)   119,600   104,600    Inventory   127,700   117,200      Total current assets   381,400   336,000 Plant assets (net)   663,000   534,300 Total assets   $1,044,400   $870,300 Liabilities and Stockholders’ Equity         Current liabilities            Accounts payable   $161,800   $147,200    Income taxes payable   45,200   43,700      Total current liabilities   207,000   190,900 Bonds payable   234,000   214,000      Total liabilities   441,000   404,900 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   $1,044,400   $870,300 All sales were on credit. Net cash provided by operating activities for 2022 was $231,000. Capital expenditures were $137,000, and cash dividends paid were $64,800. Compute the following ratios for 2022. (Round earnings per share, current ratio and asset turnover to 2 decimal places, e.g. 1.83. Round return on common stockholders’ equity, return on assets, accounts receivable turnover, average collection period, inventory turnover, days in inventory, times interest earned and debt to assets ratio to 1 decimal place, e.g. 1.8 or 1.8%. Use 365 days for calculation.) (a)   Earnings per share   $enter Earnings per share in dollars rounded to 2 decimal places    (b)   Return on common stockholders’ equity   enter Return on common stockholders’ equity in percentages rounded to 1 decimal place  % (c)   Return on assets   enter Return on assets in percentages rounded to 1 decimal place  %

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The comparative statements of Wildhorse Co. are presented here:

WILDHORSE CO.
Income Statements
For the Years Ended December 31
   
2022
 
2021
Net sales  
$1,892,340
 
$1,752,300
Cost of goods sold  
1,060,340
 
1,007,800
Gross profit  
832,000
 
744,500
Selling and administrative expenses  
501,800
 
480,800
Income from operations  
330,200
 
263,700
Other expenses and losses        
   Interest expense  
23,700
 
21,700
Income before income taxes  
306,500
 
242,000
Income tax expense  
93,700
 
74,700
Net income  
$212,800
 
$167,300

 

WILDHORSE CO.
Balance Sheets
December 31
Assets
 
2022
 
2021
Current assets        
   Cash  
$60,100
 
$64,200
   Debt investments (short-term)  
74,000
 
50,000
   Accounts receivable (net)  
119,600
 
104,600
   Inventory  
127,700
 
117,200
     Total current assets
 
381,400
 
336,000
Plant assets (net)  
663,000
 
534,300
Total assets  
$1,044,400
 
$870,300
Liabilities and Stockholders’ Equity
       
Current liabilities        
   Accounts payable  
$161,800
 
$147,200
   Income taxes payable  
45,200
 
43,700
     Total current liabilities
 
207,000
 
190,900
Bonds payable  
234,000
 
214,000
     Total liabilities  
441,000
 
404,900
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  
$1,044,400
 
$870,300


All sales were on credit. Net cash provided by operating activities for 2022 was $231,000. Capital expenditures were $137,000, and cash dividends paid were $64,800.

Compute the following ratios for 2022. (Round earnings per share, current ratio and asset turnover to 2 decimal places, e.g. 1.83. Round return on common stockholders’ equity, return on assets, accounts receivable turnover, average collection period, inventory turnover, days in inventory, times interest earned and debt to assets ratio to 1 decimal place, e.g. 1.8 or 1.8%. Use 365 days for calculation.)

(a)   Earnings per share  
$enter Earnings per share in dollars rounded to 2 decimal places 
 
(b)   Return on common stockholders’ equity  
enter Return on common stockholders’ equity in percentages rounded to 1 decimal place
 %
(c)   Return on assets  
enter Return on assets in percentages rounded to 1 decimal place
 %
(d)   Current ratio  
enter a number for current ratio rounded to 2 decimal places
 :1
(e)   Accounts receivable turnover  
enter a number for accounts receivable turnover in times rounded to 1 decimal place
 times
(f)   Average collection period  
enter a number for Average collection period in days rounded to 0 decimal places
 days
(g)   Inventory turnover  
enter a number for inventory turnover in times rounded to 1 decimal place
 times
(h)   Days in inventory  
enter a number of days in inventory rounded to 0 decimal places
 days
(i)   Times interest earned  
enter a number for times interest earned rounded to 1 decimal place
 times
(j)   Asset turnover  
enter a number for asset turnover in times rounded to 2 decimal places
 times
(k)   Debt to assets ratio  
enter Debt to assets ratio in percentages rounded to 1 decimal place
 %
(l)   Free cash flow  
$enter free cash flow in dollars rounded to 0 decimal place 
 
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