The comparative statements of Dillon Company are presented below.

Additional data:

The common stock recently sold at $19.50 per share.

The year-end balance in the allowance for doubtful accounts was $3,000 for 2011 and $2,400 for 2010.

Instructions

Compute the following ratios for 2011.

(a) Current.

(b) Acid-test.

(c) Receivables turnover.

(d) Inventory turnover.

(e) Profit margin.

(f) Asset turnover.

(g) Return on assets.

(h) Return on common stockholders’ equity.

(i) Earnings per share.

(j) Price-earnings.

(k) Payout.

(l) Debt to total assets.

(m) Times interest earned.

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DILLON COMPANY Income Statement For Year Ended December 31 2011 2010 Net sales (all on account) $600,000 $520,000 Expenses Cost of goods sold Selling and administrative Interest expense Income tax expense 415,000 354,000 120,800 114,800 6,000 7,800 18,000 14,000 Total expenses 561,600 488,800 $ 38,400 $ 31,200 Net income DILLON COMPANY Balance Sheets December 31 Assets 2011 2010 Current assets $ 21,000 $ 18,000 15,000 Cash Short-term investments 18,000 86,000 90,000 74,000 70,000 Accounts receivable (net) Inventory 177,000 Total current assets 215,000 Plant assets (net) 423,000 383,000 $638,000 $560,000 Total assets Liabilities and Stockholders' Equity Current liabilities $122,000 $110,000 20,000 Accounts payable Income taxes payable 23,000 130,000 Total current liabilities 145,000 Long-term liabilities Bonds payable 80,000 120,000 Total liabilities 265,000 210,000 Stockholders' equity Common stock ($5 par) Retained earnings 150,000 150,000 223,000 200,000 Total stockholders' equity 350,000 373,000 Total liabilities and stockholders' equity $638,000 $560,000