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ACC- Lucille Company Problem

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Question;The comparative statements of Lucille Company are presented here.LUCILLE COMPANYIncome StatementsFor the Years Ended December 312012 2011Net sales $1,890,540 $1,750,500Cost of goods sold 1,058,540 1,006,000Gross profit 832,000 744,500Selling and administrative expenses 500,000 479,000Income from operations 332,000 265,500Other expenses and lossesInterest expense 22,000 20,000Income before income taxes 310,000 245,500Income tax expense 92,000 73,000Net income $ 218,000 $ 172,500LUCILLE COMPANYBalance SheetsDecember 31Assets 2012 2011Current assetsCash $ 60,100 $ 64,200Short-term investments 74,000 50,000Accounts receivable 117,800 102,800Inventory 126,000 115,500Total current assets 377,900 332,500Plant assets (net) 649,000 520,300Total assets $1,026,900 $852,800Liabilities and Stockholders? EquityCurrent liabilitiesAccounts payable $ 160,000 $145,400Income taxes payable 43,500 42,000Total current liabilities 203,500 187,400Bonds payable 220,000 200,000Total liabilities 423,500 387,400Stockholders? equityCommon stock ($5 par) 290,000 300,000Retained earnings 313,400 165,400Total stockholders? equity 603,400 465,400Total liabilities and stockholders? equity $1,026,900 $852,800All 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.InstructionsCompute the following ratios for 2012.(a) Earnings per share. (h) Days in inventory.(b) Return on common stockholders? equity. (i) Times interest earned.(c) Return on assets. (j) Asset turnover.(d) Current ratio. (k) Debt to total assets.(e) Receivables turnover. (l) Current cash debt coverage.(f) Average collection period. (m) Cash debt coverage.(g) Inventory turnover. (n) Free cash flow.

 

Paper#44200 | Written in 18-Jul-2015

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