Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. p13-2a compute the following ratios for 2014: (a)

P13-2A Compute the following ratios for 2014: (a) Earnings per share (b) Return on common...

80.2K

Verified Solution

Question

Accounting

P13-2Aimageimage

Compute the following ratios for 2014:

(a) Earnings per share (b) Return on common stockholders' equity (c) Return on assets (d) Current ratio (e) Accounts receivable turnover (f) Average collection period (g) Inventory turnover

Instructions (a) Prepare a vertical analysis of the 2014 income statement data for Prince C. King Company. "tum-Comment on the relative profitability of thecompanies by com return on assets and the return on common stockholders' equity for both cng t pan (b) putin P13-2A The comparative statements of Osborne Company are presented h S. OSBORNE COMPANY Income Statements For the Years Ended December 31 2014 2013 Net sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses $1,890,540 1,058,540 832,000 500,000 332,000 $1,750,500 744,500 479,000 265,500 Interest expense Income before income taxes Income tax expense Net income 22,000 310,000 92,000 218,000 245,500 73,000 172,500 OSBORNE COMPANY Balance Sheets December 31 Assets 2014 2013 Current assets Cash Debt investments (short-term) Accounts receivable Inventory S 64,200 50,000 102,800 $ 60,100 74,000 126,000 377,900 649,000 $1,026,900 Total current assets Plant assets (net) Total assets

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students