Question

The comparative statements of Sheridan Company are presented here.

SHERIDAN COMPANY Income Statements For the Years Ended December 31
		2022		2021
Net sales		$1,734,400		$1,610,000
Cost of goods sold		967,000		925,520
Gross profit		767,400		684,480
Selling and administrative expenses		460,000		440,680
Income from operations		307,400		243,800
Other expenses and losses
Interest expense		20,240		18,400
Income before income taxes		287,160		225,400
Income tax expense		86,148		67,620
Net income		$ 201,012		$ 157,780

SHERIDAN COMPANY Balance Sheets December 31
Assets		2022		2021
Current assets
Cash		$ 55,292		$ 59,064
Debt investments (short-term)		68,080		46,000
Accounts receivable		108,376		94,576
Inventory		115,920		106,260
Total current assets		347,668		305,900
Plant assets (net)		597,080		478,676
Total assets		$944,748		$784,576
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable		$ 147,200		$133,768
Income taxes payable		40,020		38,640
Total current liabilities		187,220		172,408
Bonds payable		202,400		184,000
Total liabilities		389,620		356,408
Stockholders’ equity
Common stock ($5 par)		266,800		276,000
Retained earnings		288,328		152,168
Total stockholders’ equity		555,128		428,168
Total liabilities and stockholders’ equity		$944,748		$784,576

All sales were on account. Net cash provided by operating activities for 2022 was $202,400. Capital expenditures were $125,120, and cash dividends were $64,852.

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

Answer 1

1. Earnings per share = Net Income / Common Stock outstanding
= $201012/53360 = $3.77 per share
Common Stock outstanding = $266800/5 = 53360

2. Return on Common Stockholders Equity = Net Income / Average Stockholders Equity
= $201012 / 491648 = 40.89%
Average Stockholders Equity = ($555128+428168)/2 = $491648

3. Return on Assets = Net Income / Average Assets
= $201012 / 864662 = 23.25%
Average Assets = ($944748+784576)/2 = $864662

4. Current Ratio = Current Assets / Current Liabilities
= $347668/187220 = 1.86

5. Accounts Receivable turnover = Net Credit Sales / Average Accounts Receivables
= $1734400/101476 = 17.09
Average Accounts Receivable = ($108376+94576)/2 = $101476

6. Average Collection Period = 365 / Accounts Receivable turnover
= 365 / 17.09 = 21.36 days

As per HOMEWORKLIB RULES we are suppose to answer 4 parts, i have answered 6 so kindly post others separately