The comparative statements of McGillis Company are presented here.
|
McGILLIS COMPANY |
||
|
2010 |
2009 |
|
|
Net sales |
$1,890,540 |
$1,750,500 |
|
Cost of goods sold |
1,058,540 |
996,000 |
|
Gross profit |
832,000 |
754,500 |
|
Selling and administrative expenses |
506,000 |
479,000 |
|
Income from operations |
326,000 |
275,500 |
|
Other expenses and losses |
25,000 |
19,000 |
|
Income before income taxes |
301,000 |
256,500 |
|
Income tax expense |
90,000 |
77,000 |
|
Net income |
$ 211,000 |
$ 179,500 |
|
McGILLIS COMPANY |
||
|
Assets |
2010 |
2009 |
|
Current assets |
||
|
Cash |
$ 60,100 |
$ 64,200 |
|
Short term investments |
74,000 |
50,000 |
|
Accounts receivable |
117,800 |
102,800 |
|
Inventory |
123,000 |
115,500 |
|
Total current assets |
374,900 |
332,500 |
|
Plant assets (net) |
615,300 |
520,300 |
|
Total assets |
$990,200 |
$852,800 |
|
Liabilities and Stockholders’ Equity |
2010 |
2009 |
|
Current liabilities |
||
|
Accounts payable |
$160,000 |
$145,400 |
|
Income taxes payable |
43,500 |
42,000 |
|
Total current liabilities |
203,500 |
187,400 |
|
Bonds payable |
210,000 |
200,000 |
|
Total liabilities |
413,500 |
387,400 |
|
Stockholders’ equity |
290,000 |
300,000 |
|
Retained earnings |
286,700 |
165,400 |
|
Total stockholders’ equity |
576,700 |
465,400 |
|
Total liabilities and stockholders’ equity |
$990,200 |
$852,800 |
All sales were on account. Net cash provided by operating activities for 2010 was $220,000.
Capital expenditures were $120,000, and cash dividends were $80,000.
Instructions
Compute the following ratios for 2010.
(a) Earnings per share.
(b) Return on common stockholders’ equity.
(c) Return on assets.
(d) Current ratio.
(e) Receivables turnover.
(f ) Average collection period.
(g) Inventory turnover.
(h) Days in inventory.
(i) Times interest earned.
(j) Asset turnover.
(k) Debt to total assets.
(l) Current cash debt coverage.
(m) Cash debt coverage.
(n) Free cash flow.