Byers Company presents the following condensed income statement for 2019 and condensed December 31, 2019, balance sheet: Income Statement Sales (net) $267,000 Less: Cost of goods sold $160,000 Operating expenses 62,000 Interest expense 11,000 Income taxes 10,000 Total expenses (243,000) Net income $24,000 Balance Sheet Cash $10,000 Current liabilities $40,000 Receivables (net) 22,000 Bonds payable, 10% 110,000 Inventory 56,000 Common stock, $10 par 100,000 Long-term investments 30,000 Additional paid-in capital 95,000 Property and equipment (net) 282,000 Retained earnings 55,000 Total Assets $400,000 Total Liabilities and Shareholders' Equity $400,000 Additional information: The company's common stock was outstanding the entire year. Dividends of $1.50 per share on the common stock were declared in 2019. On December 31, 2019, common stock is selling for $20 per share. On January 1, 2019, the accounts receivable (net) balance was $24,000, total assets amounted to $380,000, and total shareholders' equity was $241,000. Of the company's net sales, 78% are on credit. The company operates on a 365-day business year. Required On the basis of the preceding information, compute the following ratios for the Byers Company: (Round to two decimal places.) 1. Earnings per share: 2. Gross profit margin: 3. Operating profit margin: 4. Net profit margin: 5. Total asset turnover: 6. Return on assets (Round tax rate to the nearest whole percent in your intermediate calculations.) 7. Return on common equity 8. Receivables turnover (in days): (Round your intermediate calculation to two decimal places.) 9. Interest coverage: (in times)

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter5: The Income Statement And The Statement Of Cash Flows

Section: Chapter Questions

Problem 16E

Related questions

Question

Byers Company presents the following condensed income statement for 2019 and condensed December 31, 2019, balance sheet:

Balance Sheet

Cash	$10,000	Current liabilities	$40,000
Receivables (net)	22,000	Bonds payable, 10%	110,000
Inventory	56,000	Common stock, $10 par	100,000
Long-term investments	30,000	Additional paid-in capital	95,000
Property and equipment (net)	282,000	Retained earnings	55,000
Total Assets	$400,000	Total Liabilities and Shareholders' Equity	$400,000

Additional information:

The company's common stock was outstanding the entire year.
Dividends of $1.50 per share on the common stock were declared in 2019.
On December 31, 2019, common stock is selling for $20 per share.
On January 1, 2019, the accounts receivable (net) balance was $24,000, total assets amounted to $380,000, and total shareholders' equity was $241,000.
Of the company's net sales, 78% are on credit.
The company operates on a 365-day business year.

Required

On the basis of the preceding information, compute the following ratios for the Byers Company:

(Round to two decimal places.)

1. Earnings per share:
2. Gross profit margin:
3. Operating profit margin:
4. Net profit margin:
5. Total asset turnover:
6. Return on assets (Round tax rate to the nearest whole percent in your intermediate calculations.)
7. Return on common equity
8. Receivables turnover (in days): (Round your intermediate calculation to two decimal places.)
9. Interest coverage: (in times)