Orange Company

Income Statement

For the Years Ended December 31

2013 2012

Net sales (all on account) $600,000 $520,000

Expenses:

Cost of Goods Sold $415,000 $354,000

Selling and administrative $120,800 $114,600

Interest Expense $7,800 $6,000

Income Tax Expense $18,000 $14,000

Total expenses $561,600 $488,600

Net Income $38,400 $31,400

Additional Data:

1. The common stock recently sold at $19.50 per share.

2. Cash dividends in the amount of $15,400 were paid-out in 2013.

Orange Company

Balance Sheets

December 31

2013 2012

Assets

Current Assets

Cash $21,000 $18,000

Short-term investments $18,000 $15,000

Accounts Receivable $86,000 $74,000

Inventory $90,000 $70,000

Total Current Assets $215,000 $177,000

Plant Assets $423,000 $383,000

Total Assets $638,000 $560,000

Liabilities and Stockholder’s Equity

Current Liabilities

Accounts Payable $122,000 $110,000

Income Taxes Payable $23,000 $20,000

Total Curent Liabilities $145,000 $130,000

Long-term Liabilities Bonds Payable $120,000 $80,000

Total Liabilities $265,000 $210,000

Stockholder’s Equity

Common Stock ($5 par value) $150,000 $150,000

Retained Earnings $223,000 $200,000

Total Stockholder’s Equity $373,000 $350,000

Total Liabilities and Stockholder’s Equity $638,000 $560,000

Compute the following for 2013:

2013 Calculations 2013 Answers

Current ratio

Quick ratio

Receivables turnover

Inventory turnover

Profit margin

Asset turnover

Return on assets

Return on equity

Earnings per share

Price-earnings

Cash Dividend payout

Debt ratio

Debt-to-Equity

Times interest earned