The comparative statements of Wahlberg Company are presented here.

All sales were on account. Net cash provided by operating activities for 2022 was $220,000. Capital expenditures were $136,000, and cash dividends were $70,000. 

Instructions 

Compute the following ratios for 2022. 

a. Earnings per share. 

c. Return on assets.

b. Return on common stockholders’ equity. 

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. Free cash flow.

Transcribed Image Text:

Wahlberg Company Income Statements For the Years Ended December 31 2022 2021 Net sales $1,890,540 $1,750,500 Cost of goods sold Gross profit Selling and administrative expenses 1,058,540 1,006,000 744,500 832,000 500,000 479,000 Income from operations Other expenses and losses Interest expense 332,000 265,500 22,000 20,000 Income before income taxes 310,000 92,000 245,500 73,000 Income tax expense $ 218,000 $ 172,500 Net income Wahlberg Company Balance Sheets December 31 Assets 2022 2021 Current assets $ 64,200 Cash 2$ 60,100 Debt investments (short-term) 74,000 50,000 102,800 Accounts receivable 117,800 Inventory 126,000 115,500 Total current assets 332,500 520,300 377,900 Plant assets (net) 649,000 $852,800 Total assets $1,026,900 Liabilities and Stockholders' Equity Current liabilities $ 160,000 Accounts payable Income taxes payable $145,400 43,500 42,000 Total current liabilities 203,500 187,400 200,000 Bonds payable 220,000 Total liabilities 423,500 387,400 Stockholders' equity Common stock ($5 par) Retained earnings 290,000 300,000 165,400 313,400 Total stockholders' equity 603,400 465,400 Total liabilities and stockholders' equity $1,026,900 $852,800