CAN SOMEONE HELP ME WITH THE RATIOS? The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income Statement For the Years Ended December 31 2020 2019 Net sales $1,813,600 $1,750,700 Cost of goods sold 1,007,100 978,000 Gross profit 806,500 772,700 Selling and administrative expenses 519,800 472,000 Income from operations 286,700 300,700 Other expenses and losses Interest expense 17,100 14,200 Income before income taxes 269,600 286,500 Income tax expense 80,015 77,500 Net income $ 189,585 $ 209,000 Wahlberg Company Balance Sheets December 31 Assets 2020 2019 Current assets Cash $60,600 $64,600 Debt investments (short-term) 69,100 50,300 Accounts receivable 117,500 102,800 Inventory 123,600 115,600 Total current assets 370,800 333,300 Plant assets (net) 601,200 523,900 Total assets $972,000 $857,200 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $160,600 $144,800 Income taxes payable 43,100 42,200 Total current liabilities 203,700 187,000 Bonds payable 220,000 200,000 Total liabilities 423,700 387,000 Stockholders’ equity Common stock ($5 par) 277,400 297,100 Retained earnings 270,900 173,100 Total stockholders’ equity 548,300 470,200 Total liabilities and stockholders’ equity $972,000 $857,200

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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CAN SOMEONE HELP ME WITH THE RATIOS?

The comparative statements of Wahlberg Company are presented here.

Wahlberg Company Income Statement For the Years Ended December 31
	2020	2019
Net sales	$1,813,600		$1,750,700
Cost of goods sold	1,007,100		978,000
Gross profit	806,500		772,700
Selling and administrative expenses	519,800		472,000
Income from operations	286,700		300,700
Other expenses and losses
Interest expense	17,100		14,200
Income before income taxes	269,600		286,500
Income tax expense	80,015		77,500
Net income	$ 189,585		$ 209,000

Wahlberg Company Balance Sheets December 31
Assets	2020	2019
Current assets
Cash	$60,600		$64,600
Debt investments (short-term)	69,100		50,300
Accounts receivable	117,500		102,800
Inventory	123,600		115,600
Total current assets	370,800		333,300
Plant assets (net)	601,200		523,900
Total assets	$972,000		$857,200
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$160,600		$144,800
Income taxes payable	43,100		42,200
Total current liabilities	203,700		187,000
Bonds payable	220,000		200,000
Total liabilities	423,700		387,000
Stockholders’ equity
Common stock ($5 par)	277,400		297,100
Retained earnings	270,900		173,100
Total stockholders’ equity	548,300		470,200
Total liabilities and stockholders’ equity	$972,000		$857,200

All sales were on account. Net cash provided by operating activities for 2020 was $243,000. Capital expenditures were $139,000,
and cash dividends were $91,785.
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
(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
(j)
Asset turnover
times
(k)
Debt to assets ratio
(1)
Free cash flow
$
%24
%24

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