The comparative statements of Villa Tool Company are presented below.
VILLA TOOL COMPANY
Income Statement
For the Year Ended December 31
20122011
Net sales$1,818,500$1,750,500
Cost of goods sold
1,011,500
996,000
Gross profit807,000754,500
Selling and administrative expense
516,000
479,000
Income from operations291,000275,500
Other expenses and losses
Interest expense
18,000
14,000
Income before income taxes273,000261,500
Income tax expense
81,000
77,000
Net income
$ 192,000
$ 184,500
VILLA TOOL COMPANY
Balance Sheets
December 31
Assets20122011
Current assets
Cash$ 60,100$ 64,200
Short-term investments69,00050,000
Accounts receivable (net)117,800102,800
Inventory
123,000
115,500
Total current assets
369,900
332,500
Plant assets (net)
600,300
520,300
Total assets
$970,200
$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
200,000
200,000
Total liabilities
403,500
387,400
Stockholders’ equity
Common stock ($5 par)280,000300,000
Retained earnings
286,700
165,400
Total stockholders’ equity
566,700
465,400
Total liabilities and stockholders’ equity
$970,200
$852,800
Compute the following ratios for 2012. (Weighted average common shares in 2012 were 57,000, and all sales were on account.)(Round earnings per share, current ratio and acid-test ratio to 2 decimal places, e.g. 10.50. Round other answers to 1 decimal place, e.g. 10.5.)
(a)Earnings per share$(b)Return on common stockholders’ equity%(c)Return on assets%(d)Current:1(e)Acid-test:1(f)Receivables turnovertimes(g)Inventory turnovertimes(h)Times interest earnedtimes(i)Asset turnovertimes(j)Debt to total assets%