(a) (b) (c) Earnings per share Return on common stockholders' equity Return on assets O
(a) (b) (c) Earnings per share Return on common stockholders' equity Return on assets O
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question

Transcribed Image Text:The comparative statements of Cullumber Company are presented here.
Net sales
Cost of goods sold
Gross profit
Selling and administrative expenses
Income from operations
Other expenses and losses.
Interest expense
Income before income taxes
Assets
Current assets
Income tax expense
Net income
Cash
Debt investments (short-term)
Accounts receivable
Inventory
CULLUMBER COMPANY
Income Statements
For the Years Ended December 31
Accounts payable
Income taxes payable
Total current liabilities
Bonds payable
Total current assets
Plant assets (net)
Total assets
Total liabilities
Stockholders' equity
Common stock ($5 par)
Retained earnings
Total stockholders' equity
Liabilities and Stockholders' Equity
Current liabilities
$172,800 $157,032
46,980
237,600
219,780 202,392
457.380
313.200
338,472
45,360
Total liabilities and stockholders' equity $1.109.052
216.000
418,392
324,000
CULLUMBER COMPANY
Balance Sheets
December 31
178,632
651.672 502.632
2022
$921.024
$1,993,400
1,107,000
886,400
540,000
346,400
23,760
322.640
96.792
$225,848
2022
$1,855,000
$ 64,908
79,920
127,224
136,080
2021
408,132
1,086,480
768,520
517,320
251,200
21,600
229,600
68,880
$160.720
2021
$69,336
54,000
111,024
124,740
359,100
700,920
$1,109,052 $921,024
561,924
All sales were on account. Net cash provided by operating activities for 2022 was $237,600, Capital expenditures were $146,880, and cash dividends were $66.008.
Compute the following ratios for 2022. (Round all answers to 2 decimal places, eg. 1.83 or 1.83%)

Transcribed Image Text:(a)
(b)
(c)
(d)
(e)
(f)
(g)
(h)
(j)
(k)
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
+A
$
%
%
:1
times
days
times
days.
times
%
times
Expert Solution

Step 1: Introduction
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The ratio analysis helps to anlyse the financial statements of the business. The return on stockholders' equity is calculated as the net income divided by the average stockholders' equity.
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