Comparative financial statement data for Monty Corp. and Sheffield Corp., two competitors, appear below. All balance sheet data are as of December 31, 2022. Monty Corp. Sheffield Corp. 2022 2022Net sales $ 1,944,000 $ 669,600Cost of goods sold 1,269,000 367,200Operating expenses 305,640 105,840Interest expense 10,360 4,680Income tax expense 91,800 38,880Current assets 429,600 196,560Plant assets (net) 575,400 150,940Current liabilities 71,600 36,400Long-term liabilities 117,340 44,220Net cash common by operating activities 149,040 38,880Capital expenditures 97,200 21,600Dividends paid on common stock 38,880 16,200Weighted-average common shares outstanding 80,000 50,000(a)Compute the net income and earnings per share for each company for 2022. (Round Earnings per share to 2 decimal places, e.g. $2.78.) Net Income Earnings per shareMonty Corp. $ enter a dollar amount for net income for Monty Corp. $ enter a dollar amount for earnings per share for Monty Corp. rounded to 2 decimal placesSheffield Corp. $ enter a dollar amount for net income for Sheffield Corp. $ enter a dollar amount for earnings per share for Sheffield Corp. rounded to 2 decimal places(b)Compute working capital and the current ratio for each company for 2022. (Round current ratio to 1 decimal place, e.g. 0.7 : 1.) Working Capital Current Ratio Monty Corp. $ enter a dollar amount for working capital for Monty Corp. enter the current ratio for Monty Corp. rounded to 1 decimal place:1Sheffield Corp. $ enter a dollar amount for working capital for Sheffield Corp. enter the current ratio for Sheffield Corp. rounded to 1 decimal place:1(c)Compute the debt to assets ratio and the free cash flow for each company for 2022. (Round debt to assets to 1 decimal place, e.g. 78.9%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) Debt to Assets Free Cash FlowMonty Corp. enter the debt to assets ratio for Monty Corp. in percentages rounded to 1 decimal place % $ enter a dollar amount for free cash flow for Monty Corp.Sheffield Corp. enter the debt to assets ratio Sheffield Corp. in percentages rounded to 1 decimal place % $ enter a dollar amount for free cash flow for Sheffield Corp.

A balance sheet is a financial statement that shows a company's assets, liabilities, equity capital,…

Answered: Monty Corp. Sheffield Corp. 2022…

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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Comparative financial statement data for Monty Corp. and Sheffield Corp., two competitors, appear below. All balance sheet data are as of December 31, 2022.

	Monty Corp.	Sheffield Corp.
	2022	2022
Net sales	$ 1,944,000	$ 669,600
Cost of goods sold	1,269,000	367,200
Operating expenses	305,640	105,840
Interest expense	10,360	4,680
Income tax expense	91,800	38,880
Current assets	429,600	196,560
Plant assets (net)	575,400	150,940
Current liabilities	71,600	36,400
Long-term liabilities	117,340	44,220
Net cash common by operating activities	149,040	38,880
Capital expenditures	97,200	21,600
Dividends paid on common stock	38,880	16,200
Weighted-average common shares outstanding	80,000	50,000

(a)

Compute the net income and earnings per share for each company for 2022. (Round Earnings per share to 2 decimal places, e.g. $2.78.)

	Net Income	Earnings per share
Monty Corp.	$ enter a dollar amount for net income for Monty Corp.	$ enter a dollar amount for earnings per share for Monty Corp. rounded to 2 decimal places
Sheffield Corp.	$ enter a dollar amount for net income for Sheffield Corp.	$ enter a dollar amount for earnings per share for Sheffield Corp. rounded to 2 decimal places

(b)

Compute working capital and the current ratio for each company for 2022. (Round current ratio to 1 decimal place, e.g. 0.7 : 1.)

	Working Capital	Current Ratio
Monty Corp.	$ enter a dollar amount for working capital for Monty Corp.	enter the current ratio for Monty Corp. rounded to 1 decimal place	:1
Sheffield Corp.	$ enter a dollar amount for working capital for Sheffield Corp.	enter the current ratio for Sheffield Corp. rounded to 1 decimal place	:1

(c)

Compute the debt to assets ratio and the free cash flow for each company for 2022. (Round debt to assets to 1 decimal place, e.g. 78.9%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

	Debt to Assets	Free Cash Flow
Monty Corp.	enter the debt to assets ratio for Monty Corp. in percentages rounded to 1 decimal place %	$ enter a dollar amount for free cash flow for Monty Corp.
Sheffield Corp.	enter the debt to assets ratio Sheffield Corp. in percentages rounded to 1 decimal place %	$ enter a dollar amount for free cash flow for Sheffield Corp.