Question

Problem 13-02A

The comparative statements of Cullumber Company are presented here.

CULLUMBER COMPANY Income Statements For the Years Ended December 31
		2022		2021
Net sales		$1,586,400		$1,470,000
Cost of goods sold		887,000		845,040
Gross profit		699,400		624,960
Selling and administrative expenses		420,000		402,360
Income from operations		279,400		222,600
Other expenses and losses
Interest expense		18,480		16,800
Income before income taxes		260,920		205,800
Income tax expense		78,276		61,740
Net income		$ 182,644		$ 144,060

CULLUMBER COMPANY Balance Sheets December 31
Assets		2022		2021
Current assets
Cash		$ 50,484		$ 53,928
Debt investments (short-term)		62,160		42,000
Accounts receivable		98,952		86,352
Inventory		105,840		97,020
Total current assets		317,436		279,300
Plant assets (net)		545,160		437,052
Total assets		$862,596		$716,352
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$ 134,400		$122,136
Income taxes payable		36,540		35,280
Total current liabilities		170,940		157,416
Bonds payable		184,800		168,000
Total liabilities		355,740		325,416
Stockholders’ equity
Common stock ($4 par)		243,600		252,000
Retained earnings		263,256		138,936
Total stockholders’ equity		506,856		390,936
Total liabilities and stockholders’ equity		$862,596		$716,352

All sales were on account. Net cash provided by operating activities for 2022 was $184,800. Capital expenditures were $114,240, and cash dividends were $58,324.

Compute the following ratios for 2022. (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.)

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

Answer 1

I G Earning for share= Net Income Noof equity = $182.644 - Go gco shaus f2.99 - pr share Em $2436 Ne of No of aquity= 4243 60, geo 60, gov (6) Return on comomon Stocelulder's equity - Net Income xia Avuage common Stackhelder. equity 9182,644 x16 506,856 + 390,936/2 182,644 XIO 448896 140.69% e Retum on Assets= Net Income rico Averepe A sret's $182,644 9862,596 + 716352/2 189,644 view 789474 3 12 3.13%

ca Current Ratios Current current Assets liabilities 317,436 170,940 1.86:1 Account Reciwable turnover= credit sales Averye Account Recievable $1,586,400 98,952 + 86,352/2 $1,586,400 92652 17.12 times 365 Account Recievable Tummover cf) Average collection Perjuds 365 17:12 times (8) Inventory tumovero = 21.32 days cost of good sold Average Inventory & 87, ow 105,840+ 97020/2 - po oso - 1 844 times)

ho pays in Inventory 365 x Avenape Inventoon ૮૦૬s = 365 X 101,430 887,800 ç 41.74 days cis Time Intrest eameda EBIT Intrest expense 27940 18480 = 1.51 times sales G Asset tumulera Assets Average total 91,586,400 78१५१५ = 2.01 times a (K) Debt to Asset Rahua Total Cioblitin Total Assets § 355,740 NICO $862596 101.94 71

12, free cash flow= Net cash - provided by apaating antichin Capital eapenditure = $184800 - $114240 $70,560