Complete  the following problem sets of  Financial Accounting: (P2-6A) & (P13-2A) P2-6A Condensed balance sheet and income statement data for Sadecki Corporation are presented here and on the next page. Compute and interpret liquidity, solvency, and profitability ratios . (LO 2, 4, 5), AP SADECKI CORPORATION Balance Sheets December 31 Assets   2014     2013   Cash $ 28,000 $ 20,000 Receivables (net) 70,000 62,000 Other current assets 90,000 73,000 Long-term investments 62,000 60,000 Property, 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 liabilities 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 SADECKI CORPORATION Income Statements For the Years Ended December 31   2014     2013   Sales revenue $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: Net cash provided by 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 Instructions Compute these values and ratios for 2013 and 2014. · (a) Earnings per share. · (b) Working capital. · (c) Current ratio. · (d) Debt to assets ratio. · (e) Free cash flow. · (f) Based on the ratios calculated, discuss briefly the improvement or lack thereof in financial position and operating results from 2013 to 2014 of Sadecki Corporation. P13-2A The comparative statements of Osborne Company are presented here. Compute ratios from balance sheets and income statements . (LO 6), AP OSBORNE COMPANY Income Statements For the Years Ended December 31    2014       2013    Net sales $1,890,540 $1,750,500 Cost of goods sold  1,058,540  1,006,000 Gross profit 832,000 744,500 Selling and administrative expenses   500,000   479,000 Income from operations 332,000 265,500 Other expenses and losses Interest expense    22,000    20,000 Income before income taxes 310,000 245,500 Income tax expense    92,000    73,000 Net income $  218,000 $  172,500 OSBORNE COMPANY Balance Sheets December 31 Assets    2014       2013    Current assets   Cash $  60,100 $ 64,200   Debt investments (short-term) 74,000 50,000   Accounts receivable 117,800 102,800   Inventory   126,000  115,500     Total current assets 377,900 332,500 Plant assets (net)   649,000  520,300 Total assets $1,026,900 $852,800 Liabilities and Stockholders’ Equity Current liabilities   Accounts payable $ 160,000 $145,400   Income taxes payable    43,500   42,000     Total current liabilities    203,500   187,400 Bonds payable  220,000  200,000     Total liabilities  423,500  387,400 Stockholders’ equity   Common stock ($5 par)    290,000   300,000   Retained earnings   313,400   165,400     Tota.

1. Complete
the following problem sets of
Financial Accounting:
(P2-6A) & (P13-2A)
P2-6A
Condensed balance sheet and income statement data for Sadecki
Corporation are presented here and on the next page.
Compute and interpret liquidity, solvency, and profitability
ratios
.
(LO 2, 4, 5),
AP
SADECKI CORPORATION
Balance Sheets
December 31
Assets
2014
2013
Cash
$ 28,000
$ 20,000
Receivables (net)
70,000
62,000
Other current assets
90,000
73,000
Long-term investments
62,000
60,000

2. Property, 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 liabilities
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
SADECKI CORPORATION
Income Statements
For the Years Ended December 31
2014
2013
Sales revenue
$750,000
$680,000

3. 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:
Net cash provided by 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
Instructions
Compute these values and ratios for 2013 and 2014.
·
(a) Earnings per share.
·
(b) Working capital.

4. ·
(c) Current ratio.
·
(d) Debt to assets ratio.
·
(e) Free cash flow.
·
(f) Based on the ratios calculated, discuss briefly the
improvement or lack thereof in financial position and operating
results from 2013 to 2014 of Sadecki Corporation.
P13-2A
The comparative statements of Osborne Company are presented
here.
Compute ratios from balance sheets and income statements
.
(LO 6),
AP
OSBORNE COMPANY
Income Statements
For the Years Ended December 31
2014
2013
Net sales
$1,890,540
$1,750,500
Cost of goods sold

5. 1,058,540
1,006,000
Gross profit
832,000
744,500
Selling and administrative expenses
500,000
479,000
Income from operations
332,000
265,500
Other expenses and losses
Interest expense
22,000
20,000
Income before income taxes
310,000
245,500
Income tax expense
92,000
73,000
Net income
$ 218,000
$ 172,500
OSBORNE COMPANY
Balance Sheets
December 31
Assets
2014
2013
Current assets

6. Cash
$ 60,100
$ 64,200
Debt investments (short-term)
74,000
50,000
Accounts receivable
117,800
102,800
Inventory
126,000
115,500
Total current assets
377,900
332,500
Plant assets (net)
649,000
520,300
Total assets
$1,026,900
$852,800
Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable
$ 160,000

7. $145,400
Income taxes payable
43,500
42,000
Total current liabilities
203,500
187,400
Bonds payable
220,000
200,000
Total liabilities
423,500
387,400
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
$1,026,900
$852,800
All sales were on account. Net cash provided by operating
activities for 2014 was $220,000. Capital expenditures were
$136,000, and cash dividends were $70,000.
Instructions
Compute the following ratios for 2014.
·

8. (a) Earnings per share.
·
(b) Return on common stockholders’ equity.
·
(c) Return on assets.
·
(d) Current ratio.
·
(e) Accounts receivable turnover.
·
(f) Average collection period.
·
(g) Inventory turnover.
·
(h) Days in inventory.
·
(i) Times interest earned.
·
(j) Asset turnover.
·
(k) Debt to assets.
·
(l) Current cash debt coverage.
·

9. (m) Cash debt coverage.
·
(n) Free cash flow.