The comparative statements of Waterway Company are presented here.Waterway CompanyIncome StatementsFor the Years Ended December 31 2022 2021Net sales $1,813,300 $1,753,100 Cost of goods sold 1,008,900 983,000 Gross profit 804,400 770,100 Selling and administrative expenses 516,800 477,800 Income from operations 287,600 292,300 Other expenses and losses Interest expense 18,900 14,800 Income before income taxes 268,700 277,500 Income tax expense 78,224 77,700 Net income $ 190,476 $ 199,800 Waterway CompanyBalance SheetsDecember 31Assets 2022 2021Current assets Cash $60,200 $64,500 Debt investments (short-term) 70,600 49,200 Accounts receivable (net) 117,800 102,700 Inventory 123,600 114,700 Total current assets 372,200 331,100 Plant assets (net) 602,200 517,900 Total assets $974,400 $849,000 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $159,200 $145,200 Income taxes payable 42,400 41,500 Total current liabilities 201,600 186,700 Bonds payable 220,000 200,000 Total liabilities 421,600 386,700 Stockholders’ equity Common stock ($5 par) 275,300 301,900 Retained earnings 277,500 160,400 Total stockholders’ equity 552,800 462,300 Total liabilities and stockholders’ equity $974,400 $849,000 All sales were on credit. Net cash provided by operating activities for 2022 was $231,000. Capital expenditures were $147,000, and cash dividends paid were $73,376.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.) (d) Current ratio enter the ratio rounded to 2 decimal places:1(e) Accounts receivable turnover enter a number of times rounded to 1 decimal placetimes(f) Average collection period enter a number of days rounded to 1 decimal placedays(g) Inventory turnover enter a number of times rounded to 1 decimal placetimes(h) Days in inventory enter a number of days rounded to 1 decimal placedays(i) Times interest earned enter a number of times rounded to 1 decimal placetimes(j) Asset turnover enter a number of times rounded to 2 decimal placestimes(k) Debt to assets ratio enter percentages rounded to 1 decimal place%(l) Free cash flow $enter a dollar amount

Ratio analysis refers to the process of calculating various ratios, on the basis of various…

Answered: (d) Current ratio enter the ratio…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The comparative statements of Waterway Company are presented here.

Waterway Company Income Statements For the Years Ended December 31
	2022	2021
Net sales	$1,813,300		$1,753,100
Cost of goods sold	1,008,900		983,000
Gross profit	804,400		770,100
Selling and administrative expenses	516,800		477,800
Income from operations	287,600		292,300
Other expenses and losses
Interest expense	18,900		14,800
Income before income taxes	268,700		277,500
Income tax expense	78,224		77,700
Net income	$ 190,476		$ 199,800

Waterway Company Balance Sheets December 31
Assets	2022	2021
Current assets
Cash	$60,200		$64,500
Debt investments (short-term)	70,600		49,200
Accounts receivable (net)	117,800		102,700
Inventory	123,600		114,700
Total current assets	372,200		331,100
Plant assets (net)	602,200		517,900
Total assets	$974,400		$849,000
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$159,200		$145,200
Income taxes payable	42,400		41,500
Total current liabilities	201,600		186,700
Bonds payable	220,000		200,000
Total liabilities	421,600		386,700
Stockholders’ equity
Common stock ($5 par)	275,300		301,900
Retained earnings	277,500		160,400
Total stockholders’ equity	552,800		462,300
Total liabilities and stockholders’ equity	$974,400		$849,000

All sales were on credit. Net cash provided by operating activities for 2022 was $231,000. Capital expenditures were $147,000, and cash dividends paid were $73,376.

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.)




(d)	Current ratio	enter the ratio rounded to 2 decimal places	:1
(e)	Accounts receivable turnover	enter a number of times rounded to 1 decimal place	times
(f)	Average collection period	enter a number of days rounded to 1 decimal place	days
(g)	Inventory turnover	enter a number of times rounded to 1 decimal place	times
(h)	Days in inventory	enter a number of days rounded to 1 decimal place	days
(i)	Times interest earned	enter a number of times rounded to 1 decimal place	times
(j)	Asset turnover	enter a number of times rounded to 2 decimal places	times
(k)	Debt to assets ratio	enter percentages rounded to 1 decimal place	%
(l)	Free cash flow	$enter a dollar amount

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