Net Sales Cost of Goods Sold Gross Profit Selling & Administrative Expenses Income From Operations Simpson Company Income Statements For Years Ended December 31 Other Expenses and Losses: Interest Expense Income Before Income Tax Income Tax Expense Net Income ASSETS Current Assets: Cash Debt Investments (short-term) Accounts Receivable (net) Inventory Total Current Assets Plant Assets (net) Total Assets Bonds Payable Total Current Liabilities Total Liabilities 2022 780,000 Stockholders Equity - Common Common Stock ($10 par) Retained Earnings 440,000 Total Stockholders Equity Total Liabilities & Stockholders Equity 340,000 Simpson Company Balance Sheets December 31 176,880 LIABILITIES & STOCKHOLDERS' EQUITY Current Liabilities: Accor Payable Income taxes Payable 163,120 9,920 153,200 34,000 119,200 2022 23,100 44,800 106,200 116,400 290,500 485,000 775,800 138,200 25,300 163,500 132,000 295,500 150,000 330,300 480,300 775,800 2021 624,00 0 405,00 0 218,40 0 149,76 0 68,640 7,200 61,440 14,000 47,440 2021 21,600 33,000 83,800 74,000 212,400 439,600 652,000 000 24,000 156,000 120,000 276,000 130,000 246,000 376,000 652,000 All sales were on credit. Net cash provided by operating activities for 2022 was $108,000. Capital expenditures were $47,000, and cash dividends were $30,900.
Net Sales Cost of Goods Sold Gross Profit Selling & Administrative Expenses Income From Operations Simpson Company Income Statements For Years Ended December 31 Other Expenses and Losses: Interest Expense Income Before Income Tax Income Tax Expense Net Income ASSETS Current Assets: Cash Debt Investments (short-term) Accounts Receivable (net) Inventory Total Current Assets Plant Assets (net) Total Assets Bonds Payable Total Current Liabilities Total Liabilities 2022 780,000 Stockholders Equity - Common Common Stock ($10 par) Retained Earnings 440,000 Total Stockholders Equity Total Liabilities & Stockholders Equity 340,000 Simpson Company Balance Sheets December 31 176,880 LIABILITIES & STOCKHOLDERS' EQUITY Current Liabilities: Accor Payable Income taxes Payable 163,120 9,920 153,200 34,000 119,200 2022 23,100 44,800 106,200 116,400 290,500 485,000 775,800 138,200 25,300 163,500 132,000 295,500 150,000 330,300 480,300 775,800 2021 624,00 0 405,00 0 218,40 0 149,76 0 68,640 7,200 61,440 14,000 47,440 2021 21,600 33,000 83,800 74,000 212,400 439,600 652,000 000 24,000 156,000 120,000 276,000 130,000 246,000 376,000 652,000 All sales were on credit. Net cash provided by operating activities for 2022 was $108,000. Capital expenditures were $47,000, and cash dividends were $30,900.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
There's a lot of info on this practice problem but I'm not sure where to start with it all
Transcribed Image Text:All sales were on credit. Net cash provided by operating activities for 2022 was $108,000.
Capital expenditures were $47,000, and cash dividends were $30,900.
Instructions
Compute the following ratios for 2022.
(a) Earnings per share.
(b) Return on common stockholders' equity.
(c) Return on assets.
(d) Current ratio.
(e) Accounts receivable turnover.
(f) Average collection period.
(g) Inventory turnover.
FYI: make sure you indicate if your answer is:
70 or "times" or "days"
"$" or 660% 33
(Ex: "8" = is wrong. BUT: 8 days, 8%, $8, 8 times = correct)
a) Earnings Per Share
b) Return on Common
Stockholders' Equity
c) Return on Assets
d) Current Ratio
e) Accounts Receivable
Turnover
(h) Days in inventory.
(i) Times interest earned.
(j) Asset turnover.
(k) Debt to assets ratio.
(1) Current cash debt coverage.
(m) Cash debt coverage.
(n) Free cash flow.
f) Average Collection Period
g) Inventory Turnover
h) Days in Inventory
i) Times Interest Earned
j) Asset Turnover
k) Debt to Assets
I) Current Cash Debt
Coverage
m) Cash Debt Coverage
n) Free Cash Flow
Answers
Transcribed Image Text:Net Sales
Cost of Goods Sold
Gross Profit
Selling & Administrative Expenses
Income From Operations
Simpson Company
Income Statements
For Years Ended December 31
Other Expenses and Losses:
Interest Expense
Income Before Income Tax
Income Tax Expense
Net Income
ASSETS
Current Assets:
Cash
Debt Investments (short-term)
Accounts Receivable (net)
Inventory
Total Current Assets
Plant Assets (net)
Total Assets
Accounts Payable
Income taxes Payable
Bonds Payable
Total Current Liabilities
Total Liabilities
2022
780,000
Stockholders Equity - Common
Common Stock ($10 par)
Retained Earnings
440,000
Total Stockholders Equity
Total Liabilities & Stockholders Equity
340,000
Simpson Company
Balance Sheets
December 31
LIABILITIES & STOCKHOLDERS' EQUITY
Current Liabilities:
176,880
163,120
9,920
153,200
34,000
119,200
2022
23,100
44,800
106,200
116,400
290,500
485,000
775,800
138,200
25,300
163,500
132,000
295,500
150,000
330,300
480,300
775,800
2021
624,00
0
405,00
0
218,40
0
149,76
0
68,640
7,200
61,440
14,000
47,440
2021
21,600
33,000
83,800
74,000
212,400
439,600
652,000
132,000
24,000
156,000
120,000
276,000
130,000
246,000
376,000
652,000
All sales were on credit. Net cash provided by operating activities for 2022 was $108,000.
Capital expenditures were $47,000, and cash dividends were $30,900.
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