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Exercise 13-9
Kinder Company has these comparative balance sheet data:
KINDER COMPANY
Balance Sheets
December 31
2014
2013
Cash
$ 34,110
$ 68,220
Accounts receivable (net)
159,180
136,440
Inventory
136,440
113,700
Plant assets (net)
454,800
409,320
$784,530
$727,680
Accounts payable
$ 113,700
$ 136,440
Mortgage payable (15%)
227,400
227,400
Common stock, $10 par
318,360
272,880
Retained earnings
125,070
90,960
$784,530
$727,680
Additional information for 2014:
1.
Net income was $26,300.
2.
Sales on account were $388,000. Sales returns and allowances amounted to $28,500.
3.
Cost of goods sold was $208,000.
4.
Net cash provided by operating activities was $59,000.
5.
Capital expenditures were $28,000, and cash dividends were $18,700.
Compute the following ratios at December 31, 2014.
(Round all answers to 2 decimal places,
e.g. 1.83.)
(a)
Current ratio.
:1
(b)
Accounts receivable turnover.
times
(c)
Average collection period.
days
(d)
Inventory turnover.
times
(e)
Days in inventory.
days
(f)
Cash debt coverage ratio.
times
(g)
Current cash debt coverage ratio.
times
(h)
Free cash ±ow.
$
Subject:
Accounting, Business
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