ACC 300;P2-6A SIEVERT CORPORATION ! - 24130

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  • Posted on: Wed 04 Sep, 2013
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Request Description

Condensed balance sheet and income statement data for Sievert Corporation are presented here.

 

Sievert Corporation

Balance Sheets

December 31

 

Assets                                                                     2012        2011

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

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

==================                                      ======  =======

 

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

 

Instructions

Compute these values and ratios for 2011 and 2012.

(a) Earnings per share.

(b) Working capital.

(c) Current ratio.

(d) Debt to total 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 2011 to 2012 of Sievert Corporation.

Solution Description

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