The comparative statements of Villa Tool Company are presented below.VILLA TOOL COMPANYIncome StatementFor the Year Ended December 3120122011Net sales$1 818 500$1 750 500Cost of goods sold1 011 500996 000Gross profit807 000754 500Selling and administrative expense516 000479 000Income from operations291 000275 500Other expenses and lossesInterest expense18 00014 000Income before income taxes273 000261 500Income tax expense81 00077 000Net income$ 192 000$ 184 500VILLA TOOL COMPANYBalance SheetsDecember 31Assets20122011Current assetsCash$ 60 100$ 64 200Short-term investments69 00050 000Accounts receivable (net)117 800102 800Inventory123 000115 500Total current assets369 900332 500Plant assets (net)600 300520 300Total assets$970 200$852 800Liabilities and Stockholders’ EquityCurrent liabilitiesAccounts payable$160 000$145 400Income taxes payable43 50042 000Total current liabilities203 500187 400Bonds payable200 000200 000Total liabilities403 500387 400Stockholders’ equityCommon stock ($5 par)280 000300 000Retained earnings286 700165 400Total stockholders’ equity566 700465 400Total liabilities and stockholders’ equity$970 200$852 800Compute the following ratios for 2012. (Weighted average common shares in 2012 were 57 000 and all sales were on account.)(Round earnings per share current ratio and acid-test ratio to 2 decimal places e.g. 10.50. Round other answers to 1 decimal place e.g. 10.5.)(a)Earnings per share$(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%
