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ACC300 P2-6A Sievert Corp and P13-2A Lucille Company

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ACC300 P2-6A Sievert Corp and P13-2A Lucille Company;P2-6A: Sievert Corporation;Condensed balance sheet and income statement data for Sievert Corporation are presented here and on the next page.;SIEVERT CORPORATION;Balance Sheets;31-Dec;2012 2011;Assets;Cash 28,000 20,000;Receivables (net) 70,000 62,000;Other current assets 90,000 73,000;Long-term investments 62,000 60,000;Plant and equipment (net) 510,000 470,000;Total assets 760,000 685,000;Liabilities and Stockholders Equity;Current liabilities 75,000 70,000;Long-term debt 80,000 90,000;Common stock 330,000 300,000;Retained earnings 275,000 225,000;Total liabilities and stockholders equity 760,000 685,000;SIEVERT CORPORATION;Income Statements;For the Years Ended December 31;2012 2011;Sales 750,000 680,000;Cost of goods sold 440,000 400,000;Operating expenses (including income taxes) 240,000 220,000;Net income 70,000 60,000;Additional information;Cash from operating activities 82,000 56,000;Cash used for capital expenditures 45,000 38,000;Dividends paid 20,000 15,000;Average number of shares outstanding 33,000 30,000;Instructions;Compute these values and ratios for 2011 and 2012.;(a) Earnings per share.;(b) Working capital.;(c) Current ratio.;(d) Debt to total assets ratio.;(e) Free cash flow.;(f) Based on the ratios calculated, discuss briefly the improvement or lack thereof in financial position and operating results from 2011 to 2012 of Sievert Corporation;P13-2A: Lucille Company;The comparative statements of Lucille Company are presented here.;LUCILLE COMPANY;Income Statements;For the Years Ended December 31;2012 2011;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;LUCILLE COMPANY;Balance Sheets;31-Dec;2012 2011;Assets;Current assets;Cash 60,100 64,200;Short-term investments 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 2012 was $220,000.;Capital expenditures were $136,000, and cash dividends were $70,000.;Instruction;Compute the following ratios for 2012.;(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. (n) Free cash flow.;(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.

 

Paper#29455 | Written in 18-Jul-2015

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