P13-2B The comparative statements of Jetson Company are shown below

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 Stockholders’ 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 stockholders’ 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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