The condensed financial statements of John Cully Company, for the years ended June 30, 2017 and 2016, are presented below. Compute the following ratios for 2017 and 2016. Return on assets. (Assets on 6/30/15 were $3,349.9.) Return on common stockholders’ equity. (Stockholders’ equity on 6/30/15 was $1,795.9.) Debt to assets ratio. Times interest earned.
The condensed financial statements of John Cully Company, for the years ended June 30, 2017 and 2016, are presented below. Compute the following ratios for 2017 and 2016. Return on assets. (Assets on 6/30/15 were $3,349.9.) Return on common stockholders’ equity. (Stockholders’ equity on 6/30/15 was $1,795.9.) Debt to assets ratio. Times interest earned.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
The condensed financial statements of John Cully Company, for the years ended June 30, 2017 and 2016, are presented below.
Compute the following ratios for 2017 and 2016.
- Return on assets. (Assets on 6/30/15 were $3,349.9.)
- Return on common
stockholders’ equity . (Stockholders’ equity on 6/30/15 was $1,795.9.) - Debt to assets ratio.
- Times interest earned.
Transcribed Image Text:JOHN CULLY COMPANY
Income Statements
For the Year Ended June 30
(in thousands)
2017
2016
$6,336.3
Sales revenue
Costs and expenses
Cost of goods sold
Selling and administrative expenses
Interest expense
$5,790.4
1,476.3
3,679.0
27.1
1,617.4
4,007.6
13.9
Total costs and expenses
5,638.9
5,182.4
Income before income taxes
Income tax expense
697.4
608.0
291.3
232.6
Net income
$ 406.1
$ 375.4
Transcribed Image Text:JOHN CULLY COMPANY
Balance Sheets
June 30
(in thousands)
Assets
2017
2016
Current assets
$ 553.3
Cash and cash equivalents
Accounts receivable (net)
$ 611.6
776.6
664.9
Inventory
Prepaid expenses and other current assets
768.3
653.5
269.2
2,199.2
204.4
Total current assets
2,302.6
12.3
Investments
12.6
Property, plant, and equipment (net)
Intangibles and other assets
694.2
647.0
876.7
849.3
Total assets
$3,885.8
$3,708.1
Liabilities and Stockholders' Equity
Current liabilities
Long-term liabilities
Stockholders' equity-common
Total liabilities and stockholders' equity
$1,497.7
$1,322.0
637.1
679.5
1,708.6
1,749.0
$3,885.8
$3,708.1
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