The comparative statements of Dillon Company are presented below and on the shown below.

Additional data:
The ordinary shares recently sold at £19.50 per share.
The year-end balance in the allowance for doubtful accounts was £3,000 for 2012 and £2,400 for 2011.

Instructions
Compute the following ratios for 2012.
(a) Current.
(b) Acid-test.
(c) Receivables turnover.
(d) Inventory turnover.
(e) Profit margin.
(f) Asset turnover.
(g) Return on assets.
(h) Return on ordinary shareholders’ equity.
(i) Earnings per share.
(j) Price-earnings.
(k) Payout.
(l) Debt to total assets.
(m) Time interestearned.

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DILLON COMPANY Income Statements For the Years Ended December 31 2012 2011 Net sales (all on account) £600,000 £520.000 Expenses Cost of goods sold Selling and administrative Interest expense Income tax expense 415.000 120,800 7,800 18,000 561.600 t 38.400 354,000 114,800 6.000 14.000 488,800 f 31.200 Total expenses Net income DILLON COMPANY Statements of Financial Position December 31 Assets Plant assets (net) Current assets 2012 2011 423,000 E383,000 Inventory Accounts receivable (net) Short-term investments Cash 90,000 86,000 18,000 21,000 215,000 £638,000 70,000 74,000 15.000 18,000 177,000 E560,000 Total current assets Total assets Equity and Liabilities Equity Share capitalordinary (£5 par) Retained earnings £150.000 223.000 373.000 £150,000 200.000 350,000 Total equity Bonds payable Accounts payable Non-current liabilities 120.000 80,000 Current liabilities 122.000 23,000 145,000 265,000 £638,000 110,000 20,000 130,000 210,000 £560,000 Income taxes payable Total current liabilities Total liabilities Total equity and liabilities