Homework Help is Here – Start Your Trial Now!
Business
Accounting
(a) (b) (c) Earnings per share Return on common stockholders' equity Return on assets $ 60 % %

(a) (b) (c) Earnings per share Return on common stockholders' equity Return on assets $ 60 % %

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

The comparative statements of Wildhorse Company are presented here.

### Liabilities and Stockholders' Equity #### Current Liabilities - **Accounts payable:** - 2021: $160,500 - 2022: $144,700 - **Income taxes payable:** - 2021: $42,200 - 2022: $42,600 - **Total current liabilities:** - 2021: $202,700 - 2022: $187,300 #### Long-term Liabilities - **Bonds payable:** - 2021: $220,000 - 2022: $200,000 - **Total liabilities:** - 2021: $422,700 - 2022: $387,300 #### Stockholders' Equity - **Common stock ($5 par):** - 2021: $278,000 - 2022: $297,400 - **Retained earnings:** - 2021: $268,000 - 2022: $164,300 - **Total stockholders' equity:** - 2021: $546,000 - 2022: $461,700 #### Total Liabilities and Stockholders' Equity - **Total liabilities and stockholders' equity:** - 2021: $968,700 - 2022: $849,000 **Notes:** - All sales were on credit. - Net cash provided by operating activities for 2022 was $228,000. - Capital expenditures were $144,000. - Cash dividends paid were $80,428. ### Ratios Calculation 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) **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
Transcribed Image Text:### Liabilities and Stockholders' Equity #### Current Liabilities - **Accounts payable:** - 2021: $160,500 - 2022: $144,700 - **Income taxes payable:** - 2021: $42,200 - 2022: $42,600 - **Total current liabilities:** - 2021: $202,700 - 2022: $187,300 #### Long-term Liabilities - **Bonds payable:** - 2021: $220,000 - 2022: $200,000 - **Total liabilities:** - 2021: $422,700 - 2022: $387,300 #### Stockholders' Equity - **Common stock ($5 par):** - 2021: $278,000 - 2022: $297,400 - **Retained earnings:** - 2021: $268,000 - 2022: $164,300 - **Total stockholders' equity:** - 2021: $546,000 - 2022: $461,700 #### Total Liabilities and Stockholders' Equity - **Total liabilities and stockholders' equity:** - 2021: $968,700 - 2022: $849,000 **Notes:** - All sales were on credit. - Net cash provided by operating activities for 2022 was $228,000. - Capital expenditures were $144,000. - Cash dividends paid were $80,428. ### Ratios Calculation 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) **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
### Wildhorse Company Financial Overview #### Income Statement **For the Years Ended December 31** | **Category** | **2022** | **2021** | |----------------------------------|---------------|---------------| | **Net sales** | $1,814,500 | $1,750,100 | | **Cost of goods sold** | $1,012,800 | $976,000 | | **Gross profit** | $801,700 | $774,100 | | **Selling and administrative expenses** | $517,800 | $478,800 | | **Income from operations** | $283,900 | $295,700 | | **Other expenses and losses** | | | |    Interest expense | $18,400 | $13,400 | | **Income before income taxes** | $265,500 | $282,300 | | **Income tax expense** | $81,372 | $76,500 | | **Net income** | $184,128 | $205,800 | #### Balance Sheets **December 31** | **Assets** | **2022** | **2021** | |----------------------------------|---------------|---------------| | **Current assets** | | | |    Cash | $59,200 | $64,400 | |    Debt investments (short-term) | $69,000 | $49,300 | |    Accounts receivable (net) | $117,000 | $102,900 | |    Inventory | $122,500 | $115,300 | | **Total current assets** | $367,700 | $331,900 | | **Plant assets (net)** | $600,800 | $517,100 | | **Total assets** | $968,700 | $849,000 | #### Liabilities and Stockholders’ Equity | **Category** | **2022** | **2021** | |----------------------------------|---------------|---------------| | **Current liabilities** | | | |    Accounts payable
Transcribed Image Text:### Wildhorse Company Financial Overview #### Income Statement **For the Years Ended December 31** | **Category** | **2022** | **2021** | |----------------------------------|---------------|---------------| | **Net sales** | $1,814,500 | $1,750,100 | | **Cost of goods sold** | $1,012,800 | $976,000 | | **Gross profit** | $801,700 | $774,100 | | **Selling and administrative expenses** | $517,800 | $478,800 | | **Income from operations** | $283,900 | $295,700 | | **Other expenses and losses** | | | |    Interest expense | $18,400 | $13,400 | | **Income before income taxes** | $265,500 | $282,300 | | **Income tax expense** | $81,372 | $76,500 | | **Net income** | $184,128 | $205,800 | #### Balance Sheets **December 31** | **Assets** | **2022** | **2021** | |----------------------------------|---------------|---------------| | **Current assets** | | | |    Cash | $59,200 | $64,400 | |    Debt investments (short-term) | $69,000 | $49,300 | |    Accounts receivable (net) | $117,000 | $102,900 | |    Inventory | $122,500 | $115,300 | | **Total current assets** | $367,700 | $331,900 | | **Plant assets (net)** | $600,800 | $517,100 | | **Total assets** | $968,700 | $849,000 | #### Liabilities and Stockholders’ Equity | **Category** | **2022** | **2021** | |----------------------------------|---------------|---------------| | **Current liabilities** | | | |    Accounts payable
Expert Solution
steps

Step by step

Solved in 3 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS