The comparative statements of Villa Tool Company are presented below.

All sales were on account. The allowance for doubtful accounts was $3,200 on December 31, 2011, and $3,000 on December 31, 2010.

Instructions

Compute the following ratios for 2011. (Weighted average common shares in 2011 were 57,000.)

(a) Earnings per share.

(b) Return on common stockholders’ equity.

(c) Return on assets.

(d) Current.

(e) Acid-test.

(f) Receivables turnover.

(g) Inventory turnover.

(h) Times interest earned.

(i) Asset turnover.

(j) Debt to total assets.

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VILLA TOOL COMPANY Income Statement For the Year Ended December 31 2011 2010 $1,818,500 1,011,500 $1,750,500 996,000 Net sales Cost of goods sold 807,000 516,000 754,500 Gross profit Selling and administrative expense 479,000 Income from operations Other expenses and losses Interest expense 291,000 275,500 18,000 14,000 273,000 81,000 Income before income taxes 261,500 Income tax expense 77,000 $ 192,000 $ 184,500 Net income