The comparative statements of Jetson Company are shown below.
JETSON COMPANY
Income Statements
For the Years Ended December 31
|
2012 |
2011 |
|
|
Net sales |
$780,000 |
$624,000 |
|
Cost of goods sold |
440,000 |
405,600 |
|
Gross profit |
340,000 |
218,400 |
|
Selling and administrative expense |
176,880 |
149,760 |
|
Income from operations |
163,120 |
68,640 |
|
Other expenses and losses |
||
|
Interest expense |
9,920 |
7,200 |
|
Income before income taxes |
153,200 |
61,440 |
|
Income tax expense |
38,000 |
14,000 |
|
Net income |
$115,200 |
$ 47,440 |
JETSON COMPANY
Balance Sheets
December 31
|
Assets |
2012 |
2011 |
|
Current assets Cash |
$23,100 |
$ 21,600 |
|
Short-term investments |
44,800 |
33,000 |
|
Accounts receivable |
106,200 |
83,800 |
|
Inventory |
116,400 |
74,000 |
|
Total current assets |
290,500 |
212,400 |
|
Plant assets (net) |
485,300 |
439,600 |
|
Total assets |
775,800 |
$652,000 |
Liabilities and Stockholders’ Equity
Current liabilities
|
Accounts payable |
$138,200 |
$132,000 |
|
Income taxes payable |
$25,300 |
24,000 |
|
Total current liabilities |
163,500 |
156,000 |
|
Bonds payable |
132,000 |
120,000 |
|
Total liabilities |
295,500 |
276,000 |
|
Stockholders’ equity |
||
|
Common stock ($10 par) |
150,000 |
130,000 |
|
Retained earnings |
330,300 |
246,000 |
|
Total stockholders’ equity |
480,300 |
376,000 |
|
Total liabilities and stockholders’ equity |
$775,800 |
$652,000 |
All sales were on account. Net cash provided by operating activities was $108,000. Capital expenditures were $47,000, and cash dividends were $30,900.
Instructions
Compute the following ratios for 2012.
(a) Earnings per share.
(b) Return on common stockholders’ equity.
(c) Return on assets.
(d) Current.
(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.