Question

Here and on page 84 are financial statements of Ogleby Company.
OGLEBY COMPANY
Income Statement
For the Year Ended December 31, 2014
Net sales .......... $2,218,500
Cost of goods sold ..... 1,012,400
Selling and administrative expenses... 906,000
Interest expense...... 78,000
Income tax expense.... . 69,000
Net income .......... $ 153,100
OGLEBY COMPANY
Balance Sheet
December 31, 2014
Assets
Current assets
Cash ........... $ 60,100
Debt investments...... 84,000
Accounts receivable (net)... 169,800
Inventory......... 145,000
Total current assets...... 458,900
Plant assets (net)........ 575,300
Total assets......... $1,034,200

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable ...... $ 160,000
Income taxes payable..... 35,500
Total current liabilities..... 195,500
Bonds payable....... 200,000
Total liabilities........ 395,500
Stockholders’ equity
Common stock...... 350,000
Retained earnings...... 288,700
Total stockholders’ equity.... 638,700
Total liabilities and stockholders’ equity... $1,034,200

Additional information: The net cash provided by operating activities for 2014 was $190,800. The cash used for capital expenditures was $92,000. The cash used for dividends was $31,000. The average number of shares outstanding during the year was 50,000.

Instructions
(a) Compute the following values and ratios for 2014. (We provide the results from 2013 for comparative purposes.)
(i) Working capital. (2013: $160,500)
(ii) Current ratio. (2013: 1.65:1)
(iii) Free cash flow. (2013: $48,700)
(iv) Debt to assets ratio. (2013: 31%)
(v) Earnings per share. (2013: $3.15)
(b) Using your calculations from part (a), discuss changes from 2013 in liquidity, solvency, and profitability.



$1.99
Sales14
Views821
Comments0
  • CreatedApril 07, 2014
  • Files Included
Post your question
5000