Exercise 9-12 Ratio analysis [LO 4, 5, 6, 7]

Compute the specified ratios using Hilda Companys balance sheet at December 31, 2011.

Assets
Cash	$14,000
Marketable securities	7,000
Accounts receivable	14,000
Inventory	11,000
Property and equipment	170,000
Accumulated depreciation	(11,500)
Total assets	$204,500
Equities
Accounts payable	$8,500
Current notes payable	3,500
Mortgage payable	4,500
Bonds payable	23,000
Common stock	105,000
Retained earnings	60,000
Total liabilities and stockholders equity	$204,500

The average number of common stock shares outstanding during 2011 was 850 shares. Net income for the year was $15,000.

Required

Compute each of the following:

(a)	Current ratio. (Round your answer to 2 decimal places.)

Current ratio

: 1

(b)	Earnings per share. (Round your answer to 2 decimal places. Omit the "$" sign in your response.)

Earnings per share

$ per share

(c)	Quick (acid-test) ratio. (Round your answer to 2 decimal places.)

Quick (acid-test) ratio

: 1

(d)	Return on investment. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Return on investment

%

(e)	Return on equity. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Return on equity

%

(f)	Debt to equity ratio. (Round your answer to 2 decimal places. Omit the "%" sign in your response.)

Debt to equity ratio

%