Accounting Analysis

Accounting Analysis

Question No # P13-2A

Data extracted to calculate ratios

 

2012 (Amount in $)

2011 (Amount in $)

Number of shares outstanding

58,000 60,000

Averages Total assets 939,850

 

Average stockholders' equity 534,400

 

Average Accounts Receivable

110,300

 

Average Inventory

120,750

 

Average current liabilities 195,450

 

Net Cash provided by operating activities

220,000

 

Dividends

70,000

 

Capital Expenditure

136,000

 

Question # P13-2A

2012

2011

Earnings per share

3.76

2.88

Return on common stockholders' equity

40.79%

 

Return on assets

0.23

 

Current ratio

1.86

1.77

Receivables turnover

17.14

 

Average collection period

21.30

 

Inventory turnover

8.77

 

Days in inventory

41.64

 

Times interest earned

14.09

 

Asset turnover

1.84

2.05

Debt to total assets

0.41

0.45

Current cash debt coverage

1.13

 

Cash debt coverage

0.35

 

Free cash flow

$ 84,000

 

In the given question, there are two year's income statements and balance ...