Blue Stone Corporation reported these figures:

Blue Stone has 3,000 shares of common stock outstanding. Its stock has traded recently at $28.90 per share. You would like to gain a better understanding of Blue Stone's financial position. Calculate the following ratios for 2012 and interpret the results:
a. Inventory turnover
b. Days' sales in receivables
c. Acid-test ratio
d. Times-interest-earned
e. Return on stockholders' equity
f. Earnings per share
g. Price/earnings ratio

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Balance sheet Cash and equivalents Receivables Inventory Prepaid expenses Total current assets Other assets Total assets Total current liabilities Long-term liabilities Common equity Total liabilities and equity 2012 S 1,7201,500 Sales 2011 Income statement 2012 $13,505 5,600 3,005 4,900 200 2,700 2,300 1,740Cost of sales 1,700 Operating expenses 3,210Operating income S 7,4808,150 Interest expense 17,500 Other expense $26,980$25,650 Net income 8,500 3,980 14,500 7,500 2,650 15,500 S26,980$25,650