OSBORNE COMPANY Income Statements For the Years Ended December 31 2014 2013 Net
ID: 2481740 • Letter: O
Question
OSBORNE COMPANY Income Statements For the Years Ended December 31 2014 2013 Net sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses $1,898,552 $1,758,512 1,014,012 744,500 508,012487 012 1,066,552 832,000 487,012 257,488 323,988 Interest expense Income before income taxes Income tax expense Net income 23,950 300,038 93,950 $206,088 21,950 235,538 74,950 $160,588 OSBORNE COMPANY Balance Sheets December 31 2014 2013 Assets Current assets Cash Debt investments (short-term) Accounts receivable Inventory $ 60,100 64,200 50,000 125,812110,812 127,950117,450 387,862342,462 661,00532,307 $1.048,869 $874,769 74,000 Total current assets Plant assets (net) Total assetsExplanation / Answer
(a) Erning per share = $206,088 / ((58,000+60,000) /2) = $3.49
(b) Return on common stck holders Equity = $206,088 / ((603400+465400) / 2) = 0.3856 or 38.56%
(c) Return on Assets = $206,088 / (($1,048,869 + 874,769) / 2) = 0.2142 or 21.42%
(d) Current Ratio= $387,862 / 213,462 = 1.81 : 1
(e) Account Receivable Turnover = $1,898,552 / (($125,812+110812) / 2) = 16.04 Times
(f) Average Collection Period = 365 / 16.04 = 22.75 days
(g) Inventory Turnover = $1,066,552 / (( $127,950 + 117,450) / 2) = 8.69 Times
(h) Days in Inventory = 365 / 8.69 = 42 Days
(i) Times Interest earned = $323,988 / 23,950 =13.52 Times
(j) Assets Turnover = $1,898,552 / (($1,048,869 + 874,769) / 2) = 1.97 Times
(k) Debt to Assets = $445,469 / $1,048,869 = 0.4247 or 42.47%
(l) Current cash debt coverage = $244,350 / (($213,462 + 197,362) / 2 ) = 1.189 Times
(m) Cash debt coverage = $244,350 / (($445,469+409369) / 2 ) = 0.57 Times
Information for free cash flow are not clear from the above images
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.