Requirement

Ratios - Please help with acid-test ratio and return on common stockholders' equity.

For the percentages, I assume the answer is 0.11 instead of 11%, 0.15 instead of 15, and so on?

R. Howard Inc. R. Howard Inc. Income Statement Comparative Balance Sheets For years ended December 31, 2017 and 2018 December 31, 2018 and 2017 2018 2017 Change 2018 2017 Current assets: Sales (all on credit) $595,000 $536.000 Cash $65.470 $37,500 $27.970 Cost of goods sold (339,000) (278,000) Accounts receivable (net) 38,000 32,000 6,000 Gross margin 256,000 258,000 Inventory 44.000 42.000 2,000 Prepaid expenses 1,500 3.300 -1,800 Depreciation expense 37,000 51,000 Other current assets 2.100 3,200 -1.100 Other operating 126,000 105,000 Total current assets 151.070 118,000 33.070 expenses Total operating 163.000 156.000 expenses Operating income 93,000 102,000 Long-term Investments 81,000 56.000 25.000 307,000 257,000 50,000 (77.800) (51,000) 26,800 229,200 206.000 23,200 461,270 380,000 81,270 $25,500 $26.000 $-500 Other income Plant assets (expenses) Interest expense (4.700) (3,500) Less: accumulated depreciation Gain on sale of investments 6,100 4,300 Total plant assets Loss on sale of plant (3.300) (4,000). Total assets assets Total other income (14,100) (expenses) (3.200) Current liabilities: Income before income 91,100 98,800 Accounts payable taxes Income taxes expense (27,330) (29,640) Accrued liabilities Net income $63,770 $69,160 Income taxes payable Total current liabilities R. Howard Inc. Long term liabilities: Statement of Retalned Earnings Notes Payable For the year ended December 31, 2018 Total liabilities 2018 2017 Ret. earings, Jan. 1 $29,000 $0 Stockholders' equity Add: net income 63,770 69,160 Common stock. $5 par value Deduct: Dividends (38,000) (40,160) Additional paid-in capital Increase in retained 25,770 29,000 Retained earnings earnings Ret. earings, Dec. 31 $54,770 $29.000 Total stockholders' equity Total liabilities and stockholders' equity 4,800 2.200 32,500 4,000 800 8,000 -5,800 38,000 -5,500 236,000 268,500 175,000 61,000 213,000 55,500 110,000 28.000 54,770 110,000 28,000 0 29.000 25,770 167,000 25,770 $380,000 $81,270 192.770 $461,270 22.000 Other information: Shares of common stock outstanding Eamings per share Dividends per share Market price per share, common stock 22.000 $2.9 $1.73 $15 $3.14 $1.83 $12 Choose Numerator Choose Denominator Enter Numerator Value Enter Denominator Value $ 151,070 $ 32,500 Ratio Current ratio 4.65 times Current assets Current liabilities Acid-test ratio Cash + Short-term investments + Current receivables $ 105,570 X 3.25 times Current liabilities 1$ 32,500 Return on common stockholders' equity Net income - Preferred dividends Average common stockholders' equity > x