2 of 4 Vahlberg Company Income Statement For the Years Ended December 31 2020 2019 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 Balance Sheets December 31 Assets 2020 2019 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 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
2 of 4 Vahlberg Company Income Statement For the Years Ended December 31 2020 2019 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 Balance Sheets December 31 Assets 2020 2019 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 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
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![2 of 4
Wahlberg Company
Income Statement
For the Years Ended December 31
2020
2019
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
Balance Sheets
December 31
Assets
2020
2019
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.
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](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7f8ae9c7-6339-4fe2-8260-2babeff86d98%2F1efe46d6-a75a-4f64-a323-3895ac0fd167%2F0zzs71_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2 of 4
Wahlberg Company
Income Statement
For the Years Ended December 31
2020
2019
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
Balance Sheets
December 31
Assets
2020
2019
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.
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
![Plant assets (net)
600,700
516,300
Total assets
$971,900
$848,400
Liabilities and Stockholders' Equity.
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 $79,678.
Compute the following ratios for 2020. (Round Earnings per share, Current ratio and Asset
turnover to 2 decimal places, e.g. 1.65 or 1.65:1, and all other answers to 1 decimal
place, e.g. 6.8 or 6.8%. Use 365 days for calculation.)
(a)
Earnings per share
2$
(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
G)
Asset turnover
times
(k)
Debt to assets ratio
(1)
Free cash flow](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7f8ae9c7-6339-4fe2-8260-2babeff86d98%2F1efe46d6-a75a-4f64-a323-3895ac0fd167%2Ft3hamml_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Plant assets (net)
600,700
516,300
Total assets
$971,900
$848,400
Liabilities and Stockholders' Equity.
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 $79,678.
Compute the following ratios for 2020. (Round Earnings per share, Current ratio and Asset
turnover to 2 decimal places, e.g. 1.65 or 1.65:1, and all other answers to 1 decimal
place, e.g. 6.8 or 6.8%. Use 365 days for calculation.)
(a)
Earnings per share
2$
(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
G)
Asset turnover
times
(k)
Debt to assets ratio
(1)
Free cash flow
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