The following are financial statements of Sunland Company. Sunland Company Income Statement For the Year Ended December
Question:
The following are financial statements of Sunland Company.
| Sunland Company Income Statement For the Year Ended December 31, 2022 | ||
|---|---|---|
Net sales | $2,238,000 | |
Cost of goods sold | 1,014,000 | |
Selling and administrative expenses | 908,000 | |
Interest expense | 80,000 | |
Income tax expense | 74,000 | |
Net income | $ 162,000 | |
| Sunland Company Balance Sheet December 31, 2022 | ||
|---|---|---|
Assets | ||
Current assets | ||
Cash | $ 56,400 | |
Debt investments | 81,000 | |
Accounts receivable (net) | 169,400 | |
Inventory | 184,600 | |
Total current assets | 491,400 | |
Plant assets (net) | 575,000 | |
Total assets | $ 1,066,400 | |
Liabilities and Stockholders’ Equity | ||
Current liabilities | ||
Accounts payable | $ 159,000 | |
Income taxes payable | 30,000 | |
Total current liabilities | 189,000 | |
Bonds payable | 210,900 | |
Total liabilities | 399,900 | |
Stockholders’ equity | ||
Common stock | 347,000 | |
Retained earnings | 319,500 | |
Total stockholders’ equity | 666,500 | |
Total liabilities and stockholders’ equity | $1,066,400 | |
Additional information: The net cash provided by operating activities for 2022 was $190,800. The cash used for capital expenditures was $85,500. The cash used for dividends was $32,800. The weighted-average common shares outstanding during the year was 50,000.
| (a) | Compute the following values and ratios for 2022. (We provide the results from 2021 for comparative purposes.) (Round Current Ratio and Earnings per share to 2 decimal places, e.g. 15.25 and Debt to assets ratio to 1 decimal place, e.g. 78.9%. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).) |
| (i) | Working capital. (2021: $160,500) | |
| (ii) | Current ratio. (2021: 1.65:1) | |
| (iii) | Free cash flow. (2021: $48,700) | |
| (iv) | Debt to assets ratio. (2021: 31%) | |
| (v) | Earnings per share. (2021: $3.15) |
| (i) | Working capital | $enter a dollar amount | |||
|---|---|---|---|---|---|
| (ii) | Current ratio | enter amount rounded to 2 decimal places | :1 | ||
| (iii) | Free cash flow | $enter a dollar amount | |||
| (iv) | Debt to assets ratio | enter percentages rounded to 1 decimal place | % | ||
| (v) | Earnings per share | $enter a dollar amount rounded to 2 decimal places |
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