Problem 13-2A_Lucille Company_Financial ratios
Problem 13-2A
The comparative statements of Lucille Company are presented here.
LUCILLE COMPANY
Income Statements
For the Years Ended December 31
2012 2011
Net sales $1,893,173 $1,753,133
Cost of goods sold 1,061,173 1,008,633
Gross profit 832,000 744,500
Selling and administrative expenses 502,633 481,633
Income from operations 329,367 262,867
Other expenses and losses
Interest expense 23,833 21,833
Income before income taxes 305,534 241,034
Income tax expense 93,833 74,833
Net income $ 211,701 $ 166,201
LUCILLE COMPANY
Balance Sheets
December 31
Assets 2012 2011
Current assets
Cash $ 60,100 $ 64,200
Short-term investments 74,000 50,000
Accounts receivable 120,433 105,433
Inventory 127,833 117,333
Total current assets 382,366 336,966
Plant assets (net) 660,933 532,233
Total assets $1,043,299 $869,199
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable $ 162,633 $148,033
Income taxes payable 45,333 43,833
Total current liabilities 207,966 191,866
Bonds payable 231,933 211,933
Total liabilities 439,899 403,799
Stockholders’ equity
Common stock ($5 par) 290,000 300,000
Retained earnings 313,400 165,400
Total stockholders’ equity 603,400 465,400
Total liabilities and stockholders’ equity $1,043,299 $869,199
All sales were on account. Net cash provided by operating activities for 2012 was $230,640. Capital expenditures were $135,520, and cash dividends were $63,701.
Compute the following ratios for 2012. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)
