2023 Problems P2 6B Condensed balance sheet and income statement data for Fellenz Corporation are | Assignments Online
2023 Problems P2 6B Condensed balance sheet and income statement data for Fellenz Corporation are | Assignments Online
Assignments Online 2023 Business Finance
Problems P2-6B
Condensed balance sheet and income statement data for Fellenz Corporation are presented below.
FELLENZ CORPORATION
Balance Sheets
December 31
Assets 2012 2011
Cash$ 40,000$ 24,000
Receivables (net) 90,000 55,000
Other current assets 74,000 73,000
Long-term investments 78,000 60,000
Plant and equipment (net) 520,000 407,000
Total assets $802,000 $619,000
Liabilities and Stockholders’ Equity 2012 2011
Current liabilities $ 88,000 $ 65,000
Long-term debt 90,000 70,000
Common stock 370,000 320,000
Retained earnings 254,000 164,000
Total liabilities and stockholders’ equity $802,000 $619,000
FELLENZ CORPORATION
Income Statements
For the Years Ended December 31
2012 2011
Sales $770,000 $800,000
Cost of goods sold 420,000 400,000
Operating expenses (including income taxes) 200,000 237,000
Net income $150,000 $163,000
Cash from operating activities $165,000 $178,000
Cash used for capital expenditures 85,000 45,000
Dividends paid 50,000 43,000
Average number of shares outstanding 370,000 320,000
Instructions:
Compute the following values and ratios for 2011 and 2012.
(a) Earnings per share.
(b) Working capital.
(c) Current ratio.
(d) Debt to total assets ratio.
(e) Free cash flow.
(f ) Based on the ratios calculated, discuss briefly the improvement or lack thereof in the financial position and operating results of Fellenz from 2011 to 2012.
P13-2B
The comparative statements of Jetson Company are shown below.
JETSON COMPANY
Income Statements
For the Years Ended December 31
2012 2011
Net sales $780,000 $624,000
Cost of goods sold 440,000 405,600
Gross profit 340,000 218,400
Selling and administrative expense 176,880 149,760
Income from operations 163,120 68,640
Other expenses and losses
Interest expense 9,920 7,200
Income before income taxes 153,200 61,440
Income tax expense 38,000 14,000
Net income $115,200 $ 47,440
JETSON COMPANY
Balance Sheets
December 31
Assets 2012 2011
Current assets
Cash $ 23,100 $ 21,600
Short-term investments 44,800 33,000
Accounts receivable 106,200 83,800
Inventory 116,400 74,000
Total current assets 290,500 212,400
Plant assets (net) 485,300 439,600
Total assets $775,800 $652,000
Liabilities and StockholdersÂ’ Equity
Current liabilities
Accounts payable $138,200 $132,000
Income taxes payable 25,300 24,000
Total current liabilities 163,500 156,000
Bonds payable 132,000 120,000
Total liabilities 295,500 276,000
Stockholders’ equity
Common stock ($10 par) 150,000 130,000
Retained earnings 330,300 246,000
Total stockholdersÂ’ equity 480,300 376,000
Total liabilities and stockholders’ equity $775,800 $652,000
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 2012.
(a) Earnings per share.
(b) Return on common stockholders’ equity
(c) Return on assets.
(d) Current.
(e) Receivables turnover.
(f ) Average collection period
(g) Inventory turnover.
(h) Days in inventory..
(i) Times interest earned.
(j) Asset turnover.
(k) Debt to total assets.
(l) Current cash debt coverage.
(m) Cash debt coverage.
(n) Free cash flow.
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