Need accounting help with Internal Control and Cash

Get perfect grades by consistently using our writing services. Place your order and get a quality paper today. Take advantage of our current 20% discount by using the coupon code GET20


Order a Similar Paper Order a Different Paper

P13-2A

The comparative statements of Osborne Company are presented here.

Compute ratios from balance sheets and income statements.

 

  

 

 

  

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

 

 

  

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

OSBORNE COMPANY

  

Income Statements

  

For the Years Ended December 31

  

  
  
  

 2014 

  

  

 2013 

  

 

Net
  sales

 

 

$1,890,540

 

 

$1,750,500

 

 

Cost
  of goods sold

 

 

 1,058,540

 

 

 1,006,000

 

 

Gross
  profit

 

 

832,000

 

 

744,500

 

 

Selling
  and administrative expenses

 

 

 500,000

 

 

 479,000

 

 

Income
  from operations

 

 

332,000

 

 

265,500

 

 

Other
  expenses and losses

 

 
 
 
 
 

 Interest
  expense

 

 

 22,000

 

 

 20,000

 

 

Income
  before income taxes

 

 

310,000

 

 

245,500

 

 

Income
  tax expense

 

 

 92,000

 

 

 73,000

 

 

Net
  income

 

 

$ 218,000
 

 

 

$ 172,500
 

 

  

OSBORNE COMPANY

  

Balance Sheets

  

December 31

  

  

Assets

  

  

 2014 

  

  

 2013 

  

 

Current
  assets

 

 
 
 
 
 

 Cash

 

 

$ 60,100

 

 

$ 64,200

 

 

 Debt
  investments (short-term)

 

 

74,000

 

 

50,000

 

 

 Accounts
  receivable

 

 

117,800

 

 

102,800

 

 

 Inventory

 

 

 126,000

 

 

 115,500

 

 

 Total
  current assets

 

 

377,900

 

 

332,500

 

 

Plant
  assets (net)

 

 

 649,000

 

 

 520,300

 

 

Total
  assets

 

 

$1,026,900
 

 

 

$852,800
 

 

 

  

  

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

Liabilities and Stockholders’ Equity

  

  
  
  
  
 

Current
  liabilities

 

 
 
 
 
 

 Accounts
  payable

 

 

$ 160,000

 

 

$145,400

 

 

 Income
  taxes payable

 

 

 43,500

 

 

 42,000

 

 

 Total
  current liabilities

 

 

 203,500

 

 

 187,400

 

 

Bonds
  payable

 

 

 220,000

 

 

 200,000

 

 

 Total
  liabilities

 

 

 423,500

 

 

 387,400

 

 

Stockholders’
  equity

 

 
 
 
 
 

 Common
  stock ($5 par)

 

 

 290,000

 

 

 300,000

 

 

 Retained
  earnings

 

 

 313,400

 

 

 165,400

 

 

 Total
  stockholders’ equity

 

 

 603,400

 

 

 465,400

 

 

Total
  liabilities and stockholders’ equity

 

 

$1,026,900
 

 

 

$852,800
 

 

All sales were on account. Net cash provided by operating activities for 2014 was $220,000. Capital expenditures were
$136,000, and cash dividends were $70,000.

Instructions

 

Compute the following ratios for 2014.

(a) Earnings per share.

(b) Return on common stockholders’ equity.

(c) Return on assets.

(d) Current ratio.

(e) Accounts receivable turnover.

(f) Average collection period.

(g) Inventory turnover.

(h) Days in inventory.

(i) Times interest earned.

(j) Asset turnover.

(k) Debt to assets.

(l) Current cash debt coverage.

(m) Cash debt coverage.

(n) Free cash flow

Got stuck with another paper? We can help! Use our paper writing service to score better grades and meet your deadlines.

Get 15% discount for your first order


Order a Similar Paper Order a Different Paper
Writerbay.net

Looking for this or a Similar Assignment? Click below to Place your Order Instantly!