The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income Statement For the Years Ended December 31 2020 2019 Net sales $ 1,810,000 $ 1,745,000 Cost of goods sold 1,005,000 970,000 Gross profit 805,000 775,000 Selling and administrative expenses 511,000 472,000 Income from operations 294,000 303,000 Other expenses and losses Interest expense 17,000 13,000 Income before income taxes 277,000 290,000 Income tax expense 77,500 76,000 Net income $ 199,500 $ 214,000 Wahlberg Company Balance Sheets December 31 Assets 2020 2019 Current assets Cash $ 59,000 $ 63,000 Debt investments (short-term) 68,000 49,000 Accounts receivable 116,000 101,000 Inventory 122,000 114,000 Total current assets 365,000 327,000 Plant assets (net) 595,000 515,000 Total assets $ 960,000 $ 842,000 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 159,000 $ 144,000 Income taxes payable 42,000 41,000 Total current liabilities 201,000 185,000 Bonds payable 220,000 200,000 Total liabilities 421,000 385,000 Stockholders’ equity Common stock ($5 par) 275,000 295,000 Retained earnings 264,000 162,000 Total stockholders’ equity 539,000 457,000 Total liabilities and stockholders’ equity $ 960,000 $ 842,000 All sales were on account. Net cash provided by operating activities for 2020 was $ 257,000. Capital expenditures were $ 123,000, and cash dividends were $ 97,500. 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.

The comparative statements of Wahlberg Company are presented here. Wahlberg Company Income Statement For the Years Ended December 31 2020 2019 Net sales $ 1,810,000 $ 1,745,000 Cost of goods sold 1,005,000 970,000 Gross profit 805,000 775,000 Selling and administrative expenses 511,000 472,000 Income from operations 294,000 303,000 Other expenses and losses Interest expense 17,000 13,000 Income before income taxes 277,000 290,000 Income tax expense 77,500 76,000 Net income $ 199,500 $ 214,000 Wahlberg Company Balance Sheets December 31 Assets 2020 2019 Current assets Cash $ 59,000 $ 63,000 Debt investments (short-term) 68,000 49,000 Accounts receivable 116,000 101,000 Inventory 122,000 114,000 Total current assets 365,000 327,000 Plant assets (net) 595,000 515,000 Total assets $ 960,000 $ 842,000 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $ 159,000 $ 144,000 Income taxes payable 42,000 41,000 Total current liabilities 201,000 185,000 Bonds payable 220,000 200,000 Total liabilities 421,000 385,000 Stockholders’ equity Common stock ($5 par) 275,000 295,000 Retained earnings 264,000 162,000 Total stockholders’ equity 539,000 457,000 Total liabilities and stockholders’ equity $ 960,000 $ 842,000 All sales were on account. Net cash provided by operating activities for 2020 was $ 257,000. Capital expenditures were $ 123,000, and cash dividends were $ 97,500. 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.

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Question

The comparative statements of Wahlberg Company are presented here.

Wahlberg Company Income Statement For the Years Ended December 31
	2020	2019
Net sales	$ 1,810,000		$ 1,745,000
Cost of goods sold	1,005,000		970,000
Gross profit	805,000		775,000
Selling and administrative expenses	511,000		472,000
Income from operations	294,000		303,000
Other expenses and losses
Interest expense	17,000		13,000
Income before income taxes	277,000		290,000
Income tax expense	77,500		76,000
Net income	$ 199,500		$ 214,000

Wahlberg Company Balance Sheets December 31
Assets	2020	2019
Current assets
Cash	$ 59,000		$ 63,000
Debt investments (short-term)	68,000		49,000
Accounts receivable	116,000		101,000
Inventory	122,000		114,000
Total current assets	365,000		327,000
Plant assets (net)	595,000		515,000
Total assets	$ 960,000		$ 842,000
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$ 159,000		$ 144,000
Income taxes payable	42,000		41,000
Total current liabilities	201,000		185,000
Bonds payable	220,000		200,000
Total liabilities	421,000		385,000
Stockholders’ equity
Common stock ($5 par)	275,000		295,000
Retained earnings	264,000		162,000
Total stockholders’ equity	539,000		457,000
Total liabilities and stockholders’ equity	$ 960,000		$ 842,000

All sales were on account. Net cash provided by operating activities for 2020 was $ 257,000. Capital expenditures were $ 123,000, and cash dividends were $ 97,500.

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.)

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
G)
Asset turnover
times
(k)
Debt to assets ratio
(1)
Free cash flow
$
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