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ACC - SIEVERT CORPORATION Problem

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Question;Condensed balance sheet and income statement data for Sievert Corporation are presented hereSIEVERT CORPORATIONBalance SheetsDecember 31Assets 2012 2011Cash 28,000 20,000Receivables (net) 70,000 62,000Other current assets 90,000 73,000Long-term investments 62,000 60,000Plant and equipment (net) 510,000 470,000Total assets 760,000 685,000Liabilities and Stockholders? EquityCurrent liabilities $ 75,000 $ 70,000Long-term debt 80,000 90,000Common stock 330,000 300,000Retained earnings 275,000 225,000Total liabilities and stockholders? equity $760,000 $685,000SIEVERT CORPORATIONIncome StatementsFor the Years Ended December 312012 2011Sales $750,000 $680,000Cost of goods sold 440,000 400,000Operating expenses (including income taxes) 240,000 220,000Net income $ 70,000 $ 60,000Additional information:Cash from operating activities $82,000 $56,000Cash used for capital expenditures $45,000 $38,000Dividends paid $20,000 $15,000Average number of shares outstanding 33,000 30,000InstructionsCompute 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 infinancial position and operating results from 2011 to 2012 of Sievert Corporation.

 

Paper#44199 | Written in 18-Jul-2015

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