Lindsay Hamner

ACC/300
Problem Sets P2-6A & P13-2A
Arnold Gilbo
April 20, 2015

SIEVERT CORPORATION
P2-6A
a) Earnings per share
b) Working capital

c) Current ratio
d) Debt to total assets ratio
e) Free cash flow

2011
$60,000.00/30,000 shares =
$2.00 per share
($20,000 + $62,000 + $73,000)
($ 70,000) = $85,000
$155,000/$70,000 = 2.2:1
$160,000/$685,000 = 23.4%
$56,000 $38,000 $15,000 =
$3,000

2012
$70,000.00/33.000 shares =
$2.12 per share
($28,000 + $70,000 + $90,000)
($75,000) = $113,000
$188,000/$75,000 = 2.5:1
$155,000/760,000 = 20.4%
$82,000 $45,000 - $20,000 =
$17,000

f) The financial position and operating results for the Sievert Corporation are looking up
from 2011 to 2012. The net earning and working capital have both increased. This shows
the shareholders that the profitability of the corporation has improved. Another high point
is the debt to total assets ratio has gone down and this is good as it shows less owned to
debt and more that can come in profit margins. This is shown in the increase of free cash
flow
LUCILLE COMPANY

P13-2A
a) Earnings per share

$300,000/$5 =$60,000 x $290,000/$5

=$58,000 x ($60,000 + $58,000)/2
=$59,000 x $218,000/$59,000 =

b) Return per share

c) Return on common
stockholders equity
d) Current ratio
e) Receivables turnover
f) Average collection
period
g) Inventory turnover
h) Days in inventory
i) Times interest earned
j) Asset turnover
k) Debt to total assets
l) Current cash debt
coverage
m) Cash debt coverage
n)Free cash flow

$3.69 per share

40.8% return per share

$218,000/[($465,400+$603,400)/2] =
$218,000/$534,400 =
$218,000/[($852,800+$1,026,900)/2]
=$218,000/$939,850 =|
$377,900/$203,500 =
$1,890,540/[($102,800+$117,800)/2]
=$1,890,540/$110,300 =
365 days /17.1 =
$1,058,540/[($115,500+$126,000)/2
=$1,058,540/$120,750 =
365 days / 8.8 =
$332,000/$22,000 =
$1,890,540/[($1,026,900+
$852,800)/2 =$1,890,540/$939,850 =
$423,500/$1,026,900 =
$220,000/[($187,400+$203,500)/2]
=$220,000/$195,450 =
$220,000/[($387,400+$423,500)/2]
=$220,000/$405,450 =
$220,000 - $136,000 - $70,000 =

23.2% return on common

stockholders equity
1.86:1
17.1 times
21.3 days
8.8 times
41.5 days
15.1 times
2.01 times
41% debt to total assets
1.13
.54
$14,000.00