Problem 13-02A (Video) The comparative statements of Cullumber Company are presented here: Cullumber CompanyIncome StatementsFor the Years Ended December 31 2020 2019 Net sales $1,891,640 $1,751,600 Cost of goods sold 1,059,640 1,007,100 Gross profit 832,000 744,500 Selling and administrative expenses 501,100 480,100 Income from operations 330,900 264,400 Other expenses and losses Interest expense 23,700 21,700 Income before income taxes 307,200 242,700 Income tax expense 93,700 74,700 Net income $213,500 $168,000 Cullumber CompanyBalance SheetsDecember 31 Assets 2020 2019 Current assets Cash $60,100 $64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable 118,900 103,900 Inventory 127,700 117,200 Total current assets 380,700 335,300 Plant assets (net) 661,000 532,300 Total assets $1,041,700 $867,600 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $161,100 $146,500 Income taxes payable 45,200 43,700 Total current liabilities 206,300 190,200 Bonds payable 232,000 212,000 Total liabilities 438,300 402,200 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 $1,041,700 $867,600 All sales were on account. Net cash provided by operating activities for 2020 was $227,000. Capital expenditures were $136,000, and cash dividends were $65,500.Compute the following ratios for 2020. (Round free cash flow to 0 decimal places, e.g. 5,275 and all other answers to 2 decimal places, e.g. 1.83 or 1.83%. Use 365 days for calculation.) (a) Earnings per share $ (b) Return on common stockholders’ equity % (c) Return on assets % (d) Current ratio :1 (e) Accounts receivable turnover times (f) Average collection period days (g) Inventory turnover times (h) Days in inventory days (i) Times interest earned times (j) Asset turnover times (k) Debt to assets ratio % (l) Free cash flow $

Problem 13-02A (Video) The comparative statements of Cullumber Company are presented here: Cullumber CompanyIncome StatementsFor the Years Ended December 31 2020 2019 Net sales $1,891,640 $1,751,600 Cost of goods sold 1,059,640 1,007,100 Gross profit 832,000 744,500 Selling and administrative expenses 501,100 480,100 Income from operations 330,900 264,400 Other expenses and losses Interest expense 23,700 21,700 Income before income taxes 307,200 242,700 Income tax expense 93,700 74,700 Net income $213,500 $168,000 Cullumber CompanyBalance SheetsDecember 31 Assets 2020 2019 Current assets Cash $60,100 $64,200 Debt investments (short-term) 74,000 50,000 Accounts receivable 118,900 103,900 Inventory 127,700 117,200 Total current assets 380,700 335,300 Plant assets (net) 661,000 532,300 Total assets $1,041,700 $867,600 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $161,100 $146,500 Income taxes payable 45,200 43,700 Total current liabilities 206,300 190,200 Bonds payable 232,000 212,000 Total liabilities 438,300 402,200 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 $1,041,700 $867,600 All sales were on account. Net cash provided by operating activities for 2020 was $227,000. Capital expenditures were $136,000, and cash dividends were $65,500.Compute the following ratios for 2020. (Round free cash flow to 0 decimal places, e.g. 5,275 and all other answers to 2 decimal places, e.g. 1.83 or 1.83%. Use 365 days for calculation.) (a) Earnings per share $ (b) Return on common stockholders’ equity % (c) Return on assets % (d) Current ratio :1 (e) Accounts receivable turnover times (f) Average collection period days (g) Inventory turnover times (h) Days in inventory days (i) Times interest earned times (j) Asset turnover times (k) Debt to assets ratio % (l) Free cash flow $

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter5: Sales And Receivables

Section: Chapter Questions

Problem 57BE

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Problem 13-02A (Video)

The comparative statements of Cullumber Company are presented here:

Cullumber Company Income Statements For the Years Ended December 31
	2020	2019
Net sales	$1,891,640	$1,751,600
Cost of goods sold	1,059,640	1,007,100
Gross profit	832,000	744,500
Selling and administrative expenses	501,100	480,100
Income from operations	330,900	264,400
Other expenses and losses
Interest expense	23,700	21,700
Income before income taxes	307,200	242,700
Income tax expense	93,700	74,700
Net income	$213,500	$168,000

Cullumber Company Balance Sheets December 31
Assets	2020	2019
Current assets
Cash	$60,100	$64,200
Debt investments (short-term)	74,000	50,000
Accounts receivable	118,900	103,900
Inventory	127,700	117,200
Total current assets	380,700	335,300
Plant assets (net)	661,000	532,300
Total assets	$1,041,700	$867,600
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable	$161,100	$146,500
Income taxes payable	45,200	43,700
Total current liabilities	206,300	190,200
Bonds payable	232,000	212,000
Total liabilities	438,300	402,200
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	$1,041,700	$867,600

All sales were on account. Net cash provided by operating activities for 2020 was $227,000. Capital expenditures were $136,000, and cash dividends were $65,500.

Compute the following ratios for 2020. (Round free cash flow to 0 decimal places, e.g. 5,275 and all other answers to 2 decimal places, e.g. 1.83 or 1.83%. Use 365 days for calculation.)

(a)	Earnings per share	$
(b)	Return on common stockholders’ equity		%
(c)	Return on assets		%
(d)	Current ratio		:1
(e)	Accounts receivable turnover		times
(f)	Average collection period		days
(g)	Inventory turnover		times
(h)	Days in inventory		days
(i)	Times interest earned		times
(j)	Asset turnover		times
(k)	Debt to assets ratio		%
(l)	Free cash flow	$

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