P2-6A: Sievert CorporationCondensed balance sheet and income statement data for Sievert Corporation are presented here and on the next page.SIEVERT CORPORATIONBalance Sheets31-Dec2012 2011AssetsCash 28 000 20 000Receivables (net) 70 000 62 000Other current assets 90 000 73 000Long-term investments 62 000 60 000Plant and equipment (net) 510 000 470 000Total assets 760 000 685 000Liabilities and Stockholders EquityCurrent liabilities 75 000 70 000Long-term debt 80 000 90 000Common stock 330 000 300 000Retained earnings 275 000 225 000Total liabilities and stockholders equity 760 000 685 000SIEVERT CORPORATIONIncome StatementsFor the Years Ended December 312012 2011Sales 750 000 680 000Cost of goods sold 440 000 400 000Operating expenses (including income taxes) 240 000 220 000Net income 70 000 60 000Additional information:Cash from operating activities 82 000 56 000Cash used for capital expenditures 45 000 38 000Dividends paid 20 000 15 000Average number of shares outstanding 33 000 30 000InstructionsCompute these values and ratios for 2011 and 2012.(a) Earnings per share.(b) Working capital.(c) Current ratio.(d) Debt to total assets ratio.(e) Free cash flow.(f ) Based on the ratios calculated discuss briefly the improvement or lack thereof in financial position and operating results from 2011 to 2012 of Sievert CorporationP13-2A : Lucille CompanyThe comparative statements of Lucille Company are presented here.LUCILLE COMPANYIncome StatementsFor the Years Ended December 312012 2011Net sales 1 890 540 1 750 500Cost of goods sold 1 058 540 1 006 000Gross profit 832 000 744 500Selling and administrative expenses 500 000 479 000Income from operations 332 000 265 500Other expenses and lossesInterest expense 22 000 20 000Income before income taxes 310 000 245 500Income tax expense 92 000 73 000Net income 218 000 172 500LUCILLE COMPANYBalance Sheets31-Dec2012 2011AssetsCurrent assetsCash 60 100 64 200Short-term investments 74 000 50 000Accounts receivable 117 800 102 800Inventory 126 000 115 500Total current assets 377 900 332 500Plant assets (net) 649 000 520 300Total assets 1 026 900 852 800Liabilities and Stockholders EquityCurrent liabilitiesAccounts payable 160 000 145 400Income taxes payable 43 500 42 000Total current liabilities 203 500 187 400Bonds payable 220 000 200 000Total liabilities 423 500 387 400Stockholders equityCommon stock ($5 par) 290 000 300 000Retained earnings 313 400 165 400Total stockholders equity 603 400 465 400Total liabilities and stockholders equity 1 026 900 852 800All 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.Instruction: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.Online
