The comparative statements of Simpson Company are shown below.

All sales were on account. Net cash provided by operating activities was $108,000. Capital expenditures were $47,000, and cash dividends were $30,900.

Instructions

Compute the following ratios for 2014.

(a) Earnings per share.

(b) Return on common stockholders’ equity.

(c) Return on assets.

(d) Current ratio.

(e) Accounts receivable turnover.

(f) Average collection period. (g) Inventory turnover.

(h) Days in inventory.

(i) Times interest earned.

(j) Asset turnover.

(k) Debt to assets ratio.

(l) Current cash debt coverage.

(m) Cash debt coverage.

(n) Free cash flow.

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SIMPSON COMPANY Income Statements For the Years Ended December 31 2014 2013 $624,000 405,600 Net sales $780,000 Cost of goods sold 440,000 Gross profit Selling and administrative expenses 340,000 176,880 218,400 149,760 Income from operations Other expenses and losses Interest expense Income before income taxes 163,120 68,640 9,920 7,200 153,200 34,000 61,440 14,000 Income tax expense $ 47,440 $119,200 Net income SIMPSON COMPANY Balance Sheets December 31 Assets 2014 2013 Current assets Cash Debt investments (short-term) Accounts receivable Inventory $ 23,100 $ 21,600 33,000 83,800 74,000 44,800 106,200 116,400 Total current assets 290,500 485,300 $775,800 212,400 439,600 Plant assets (net) Total assets $652,000 Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable $138,200 25,300 $132,000 24,000 Total current liabilities 156,000 163,500 132,000 295,500 Bonds payable 120,000 Total liabilities Stockholders' equity Common stock ($10 par) Retained earnings Total stockholders' equity 276,000 150,000 330,300 130,000 246,000 480,300 376,000 $652,000 Total liabilities and stockholders' equity $775,800