The financial statements of Hainz Company appear below:
HAINZ COMPANY
Comparative Balance Sheet
December 31
Assets 2017 2016
Cash $20,000 $40,000
Short-term investments 20,000 60,000
Accounts receivable (net) 40,000 30,000
Inventory 60,000 70,000
Property, plant and equipment (net) 260,000 300,000
Total assets $400,000 $500,000
Liabilities and stockholders' equity
Accounts payable $20,000 $30,000
Short-term notes payable 40,000 90,000
Bonds payable 80,000 160,000
Common stock 150,000 150,000
Retained earnings 110,000 70,000
Total liabilities and stockholders' equity $400,000 $500,000
HAINZ COMPANY
Income Statement
For the Year Ended December 31, 2017
Net sales $400,000
Cost of goods sold 250,000
Gross profit 150,000
Expenses
Operating expenses $42,000
Interest expense 18,000
Total expenses 60,000
Income before income taxes 90,000
Income tax expense 27,000
Net income $63,000
Additional information:
a. Cash dividends of $23,000 were declared and paid in 2017.
b. Weighted-average number of shares of common stock outstanding during 2017 was 30,000 shares.
c. Market value of common stock on December 31, 2017, was $21 per share.
Required:
(A) Using the financial statements and additional information, compute the following ratios for Hainz Company for 2017. (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 52.7.)
1. Current ratio
2. Return on common stockholders' equity %
3. Price-earnings ratio times
4. Acid-test ratio
5. Accounts receivable turnover times
6. Times interest earned times
7. Profit margin %
8. Days in inventory days
9. Payout ratio %
10. Return on assets %