Problem 13 2a

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%.)