Problem 2 - Ratio and financial analysis (20 points)
Directions: Using the financial data provided below, compute the following ratios, round to two decimal places, and show all supporting work typed out or as an Excel formula.

Assets
Cash	$ 125,000
Short-term investments	$ 50,000
Accounts receivable	$ 200,000
Merchandise inventory	$ 150,000
Prepaid expenses	$ 10,000
Property, Plant and Equipment (net)	$ 965,000
Liabilities and Stockholders Equity
Accounts payable	$ 210,000
Notes payable (due in 6 months)	$ 40,000
Accrued liabilities (all short term)	$ 10,000
Bonds payable, 10%, (due in 10 years)	$ 250,000
Common stock, $20 par, 25,000 shares	$ 500,000
Paid-in capital in excess of par	$ 40,000
Retained earnings	$ 450,000
Selected Data
Average accounts receivable	$ 175,000
Average merchandise inventory	$ 130,000
Average stockholders equity	$ 900,000
Average total assets	$ 1,400,000
Cash dividends paid on common stock	$ 75,000
Cost of goods sold	$ 950,000
Income before income tax	$ 180,000
Interest expense	$ 25,000
Net income	$ 120,000
Net sales	$ 1,600,000
Common stock, market price at Dec 31	$72.00
Part 1: complete the ratio calculation

Ratio required	Supporting work required (type here or use an Excel forumula)	Final answer
0. Ratio of fixed assets to long-term liabilities	=965000/250000	3.86
1. Quick ratio
2. Current ratio
3. Inventory turnover
4. Accounts receivable turnover
5. Return on total assets
6. Return on stockholders equity
7. Times interest earned
8. Earnings per share on common stock
9. Price-earnings ratio on common stock
10. Dividend yield on common stock
Part 2: comment on how this business is doing based on the above ratio analysis