Compute ratios for 2012 a-m below

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P13-2A : Lucille Company

The comparative statements of Lucille Company are presented here.


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


Balance Sheets


2012 2011


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.


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.

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