Problem 17-4B Calculating financial statement ratios Selected current year-end financial statements of Overton Corporation follow. (All sales were on credit: selected balance sheet amounts at December 31 of the prior year were inventory, $17,400; total assets. $94.900; common stock, 535,500; and retained earnings, $18,800.) P3 OVERTON CORPORATION Income Statement For Current Year Ended December 31 OVERTON CORPORATION Balance Sheet December 31 of Current Year $ Sales ............. Cost of goods sold...... Gross profit.......... Operating expenses..... Interest expense........ Income before taxes..... Income tax expense.... Net income.......... Assets Cash. Short-term investments ... Accounts receivable, net... Merchandise inventory..... Prepaid expenses....... Plant assets, net.......... $315,500 236,100 79,400 49,200 2,200 28.000 4.200 $ 23,800 $ 11,500 3,300 2,600 6,100 6.900 15,100 13.500 2,000 Liabilities and Equity Accounts payable......... Accrued wages payable......... Income taxes payable .... Long-term note payable, secured by mortgage on plant assets.... Common stock, $5 par value...... Retained earnings .............. Total liabilities and equity ....... 73,900 30,000 35,000 35.100 $117,500 Total assets ............. $117,500 Check Acid-test ratio, 1.6 to 1; Inventory turnover, 15.3 Required Compute the following: (1) current ratio. (2) acid-test ratio, (3) days' sales uncollected. (4) inventory turnover, (5) days' sales in inventory. (6) debt-to-equity ratio. (7) times interest earned. (8) profit margin turnover. (5) days ratio, (9) total asset turnover, (10) return on total assets, and (11) return on common stockholders' equily. Round to one decimal place; for part 6. round to two decimals. Problem 17-5B Comparative ratio analysis P3 Summary information from the financial statements of two companies competing in the same industry follows