The following are financial statements of Cullumber Company. Cullumber Company Income Statement For the Year Ended...

Transcribed Image Text:

The following are financial statements of Cullumber Company. Cullumber Company Income Statement For the Year Ended December 31, 2025 Net sales Cost of goods sold Selling and administrative expenses Interest expense Income tax expense Net Income $2,217,000 1,014,500 906,500 82,000 68,000 $146,000 Assets Cullumber Company Balance Sheet December 31, 2025 Current assets Cash Debt investments Accounts receivable (net) Inventory Total current assets Plant assets (net) Total assets $ 62,400 82,000 168,800 230,050 543,250 573,500 $1,116,750 Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders equity Total liabilities and stockholders equity $ 160,000 45,000 205,000 174,695 379,695 352.000 385,055 737,055 $1,116,750 Compute the following values and ratios for 2025. (i) Working capital, (2024, $160,500) (ii) Current ratio, (2024, 1.65:1) (iii) Debts to asset ratio, (2024 31%) (iv) Earning per share (2024, $3.14) The following are financial statements of Cullumber Company. Cullumber Company Income Statement For the Year Ended December 31, 2025 Net sales Cost of goods sold Selling and administrative expenses Interest expense Income tax expense Net Income $2,217,000 1,014,500 906,500 82,000 68,000 $146,000 Assets Cullumber Company Balance Sheet December 31, 2025 Current assets Cash Debt investments Accounts receivable (net) Inventory Total current assets Plant assets (net) Total assets $ 62,400 82,000 168,800 230,050 543,250 573,500 $1,116,750 Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock Retained earnings Total stockholders equity Total liabilities and stockholders equity $ 160,000 45,000 205,000 174,695 379,695 352.000 385,055 737,055 $1,116,750 Compute the following values and ratios for 2025. (i) Working capital, (2024, $160,500) (ii) Current ratio, (2024, 1.65:1) (iii) Debts to asset ratio, (2024 31%) (iv) Earning per share (2024, $3.14)

Answer rating: 100% (QA)

Based on the financial statements provided for Cullumber Company I will compute the following values ... View the full answer