Partially correct answer iconYour answer is partially correct.The comparative statements of Wahlberg Company are presented here.Wahlberg CompanyIncome StatementFor the Years Ended December 31 2020 2019Net 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 Stockholders' equityCommon stock ($5 par)275,000295,000Retained earnings264,000162,000Total stockholders' equity539,000457,000Total liabilities and stockholders' equity $960,000$ 842,000All 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, eg. 6.8 or 6.8%. Use 365 days for calculation.)(a)Earnings per share3.6(b)Return on common stockholders' equity28.9(c)Return on assets22.1(d)Current ratio1.82:1(e)Accounts receivable turnover16.68times(f)Average collection period21.9days(g)Inventory turnovertimes8.5(h)Days in inventory42.9days(1)Times interest earned17.3timesAsset turnover2times(k)Debt to assets ratio43.9(1)Free cash flow36500%24 The comparative statements of Wahlberg Company are presented here.Wahlberg CompanyIncome StatementFor the Years Ended December 3120202019Net sales$1810,000$1.745,000Cost of goods sold1,005.000970,000Gross profit805,000775,000Selling and administrative expenses511,000472,000Income from operations294,000303,000Other expenses and lossesInterest expense17,00013,000Income before income taxes277,000290,000Income tax expense77,50076,000Net income$ 199.500$ 214,000Wahlberg CompanyBalance SheetsDecember 31Assets20202019Current assetsCash$59.000$63,000Debt investments (short-term)68,00049,000Accounts receivable116,000101,000Inventory122,000114,000Total current assets365,000327,000Plant assets (net)595,000515,000Total assets$ 960,000$842,000Liabilities and Stockholders' EquityCurrent liabilitiesAccounts payable$ 159.000$ 144,000Income taxes payable42,00041,000Total current liabilities201,000185,000Bonds payable220,000200,000Total liabilities421,000385,000Stockholders' equity

In order to determine the earning per share, the earnings available to equity shareholders are…

Answered: Wahlberg Company Income Statement For…

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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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