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Orange Company
Income Statement
For the Years Ended
December 31
2013 2012
Net sales (all on account) $600,000 $520,000
Expenses:
Cost of Goods Sold $415,000 $354,000
Selling and administrative $120,800 $114,600
Interest Expense $7,800 $6,000
Income Tax Expense $18,000 $14,000
Total expenses $561,600 $488,600
Net Income $38,400 $31,400
Additional Data:
1. The common stock recently sold at $19.50 per share.
2. Cash dividends in the amount of $15,400 were paid-out in 2013.
Orange Company
Balance Sheets
December 31
2013 2012
Assets
Current Assets
Cash $21,000 $18,000
Short-term investments $18,000 $15,000
Accounts Receivable $86,000 $74,000
Inventory $90,000 $70,000
Total Current Assets $215,000 $177,000
Plant Assets $423,000 $383,000
Total Assets $638,000 $560,000
Liabilities and
Stockholder’s Equity
Current Liabilities
Accounts Payable $122,000 $110,000
Income Taxes Payable $23,000 $20,000
Total Curent Liabilities $145,000 $130,000
Long-term Liabilities Bonds Payable $120,000 $80,000
Total Liabilities $265,000 $210,000
Stockholder’s Equity
Common Stock ($5 par value) $150,000 $150,000
Retained Earnings $223,000 $200,000
Total Stockholder’s Equity $373,000 $350,000
Total Liabilities and Stockholder’s Equity $638,000 $560,000
Compute the following for 2013:
2013 Calculations 2013 Answers
Current ratio
Quick ratio
Receivables turnover
Inventory turnover
Profit margin
Asset turnover
Return on assets
Return on equity
Earnings per share
Price-earnings
Cash Dividend payout
Debt ratio
Debt-to-Equity
Times interest earned
