P2‑6A
Condensed balance sheet and income statement data for Sievert Corporation are
presented here and on the next page.
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SIEVERT CORPORATION
Balance Sheets
December 31
|
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|
Assets
|
2012
|
2011
|
|
Cash
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$ 28,000
|
$ 20,000
|
|
Receivables
(net)
|
70,000
|
62,000
|
|
Other
current assets
|
90,000
|
73,000
|
|
Long-term
investments
|
62,000
|
60,000
|
|
Plant
and equipment (net)
|
510,000
|
470,000
|
|
Total
assets
|
$760,000
|
$685,000
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
Current
liabilities
|
$ 75,000
|
$ 70,000
|
|
Long-term
debt
|
80,000
|
90,000
|
|
Common
stock
|
330,000
|
300,000
|
|
Retained
earnings
|
275,000
|
225,000
|
|
Total
liabilities and stockholders’ equity
|
$760,000
|
$685,000
|
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SIEVERT CORPORATION
Income StatementsFor the Years Ended December 31
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|
|
2012
|
2011
|
|
Sales
|
$750,000
|
$680,000
|
|
Cost
of goods sold
|
440,000
|
400,000
|
|
Operating
expenses (including income taxes)
|
240,000
|
220,000
|
|
Net
income
|
$ 70,000
|
$ 60,000
|
Additional
information:
|
Cash
from operating activities
|
$82,000
|
$56,000
|
|
Cash
used for capital expenditures
|
$45,000
|
$38,000
|
|
Dividends
paid
|
$20,000
|
$15,000
|
|
Average
number of shares outstanding
|
33,000
|
30,000
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Compute and interpret liquidity, solvency, and profitability ratios.
(SO
2, 4, 5), AP
Instructions
Compute
these values and ratios for 2011 and 2012.
1.
Earnings per share.
2.
Working capital.
3.
Current ratio.
4.
Debt to total assets ratio.
5.
Free cash flow.
6.
Based on the ratios calculated, discuss briefly the improvement or lack thereof
in financial position and operating results from 2011 to 2012 of Sievert
Corporation.
TUTORIAL PREVIEW
|
|
Formula
|
2011
|
2012
|
|
(a)
|
Earnings per share= Net
Income/ No. of common shares
|
$60,000/ 30,000 shares
= $2.00
|
$70,000/ 30,000 shares
= $2.33
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