E ment Problem 18-2A The comparative statements of Painter Tool Company are pres
ID: 2560057 • Letter: E
Question
E ment Problem 18-2A The comparative statements of Painter Tool Company are presented below. PAINTER TOOL COMPANY Income Statement For the Years Ended December 31 2017 2016 Net sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses $1,811,500 1,013,400 798,100 515,200 282,900 $1,751,600 985,000 766,600 477,800 288,800 Interest expense y Income before income taxes Income tax expense 18,600 264,300 80,300 $184,000 14,300 274,500 77,600 Net income $ 196,900 PAINTER TOOL COMPANY Balance Sheets December 31 Assets Current assets 2017 2016 Cash $60,600 $64,900 re to searchExplanation / Answer
Earnings Per share Earnings available for Stockholders/average no of equity shares 184000/58470 3.15 (weighted average equity shares are not visible in question screenshot) Return on stockholders equity Earnings available for Stockholders/ average stock value + retained earnings 184000/516400 35.63% Return on Assets Net earnings/average Assets 184000/912400 20.17% Current Ratio Current Assets/Current Liabilities 368400/203000 1.81 Acid Test Ratio Liquid Assets/current Liabilities (368400-122500)/203000 1.21 Accounts Receivable Turnover Ratio Net Credit Sales/Avg Accounts Receivable 1811500/109200 16.59 Inventory Turnover Ratio Cost of goods sold/average inventory 1013400/118750 8.53 Times Interest Earned Earnings before interest and taxes/interest paid 282900/18600 15.21 Asset Turnover Ratio Revenue/Average total assets 1811500/912400 1.99 Debt to Asset Ratio Total Debt/Total Assets 404000/972300 0.42
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