Question: Kimmel, Accounting, 6e Problem 13-2A - Questions A-L

Practice Problem Set 1 The comparative statements of Sandhill Co. are presented here. SANDHILL CO. Income Statements For the Years Ended December 31 Compute the following ratios for 2017 (Round all answers to 2 decimal places, e.g. 1.83 or 1.83%.) 2017 2016 Net sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses 1,896,740 1,064,740 832,000 506,200 325,800 1,756,700 1,012,200 744,500 485,200 259,300 (a) Earnings per share (b) Return on common stockholders' equity (c) Return on assets (d) Current ratio (e) Accounts receivable tumover (f) Average collection period (9) Inventory turnover 23,200 302,600 93,200 209,400 times days times days times times Interest expense Income before income taxes Income tax expense Net income 21,200 238,100 74,200 S 163,900 ) Days in inventory iTimes interest earned j) Asset turnover (k) Debt to assets ratio (1) Free cash flow SANDHILL cO. Balance Sheets December 31 Assets Current assets Cash Debt investments (short-term) Accounts receivable Inventory 60,100 64,200 50,000 109,000 127,200 116,700 385,300 339,900 664,000 535,300 $1,049,300 875,200 74,000 124,000 Total current assets Plant assets (net) Total assets Current liabilities Accounts payable 166,200 151,600 43,200 210,900 194,800 235,000 215,000 445,900 409,800 Income taxes payable 44,700 Total current liabilities Bonds payable Total liabilities Stockholders' equity 290,000 300,000 313,400 165,400 603,400 465,400 $1,049,300 $875,200 Common stock (S5 par) Retained earnings Total stockholders' equity Total liabilities and stackholders' equity All sales were on account. Net cash provided by operating activities for 2017 was $229,000 Capital expenditures were137,000, and cash dividends were $61,400