The following are a condensed income statement for 2007 and a December 31, 2007 balance sheet for the Allen Company:

Additional information: The corporate common stock was outstanding the entire year and is selling for $16 per share at yearend. On January 1, 2007, the inventory was $21,500, the total assets were $224,000, the accounts payable were $18,800, and the total stockholders' equity was $130,800. The company operates on a 300-day business year.
Required
For the Allen Company, compute the following ratios:
1. Price/earnings
2. Profit margin
3. Return on total assets
4. Return on stockholders' equity
5. Current
6. Inventory turnover (in days)
7. Payables turnover (in days)
8. Debt
Is the company favorably "trading on its equity"?Explain.

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Balance Sheet Cash Receivables (net) Inventory Property, plant, and equipment (net) 195.800 Common stock, S10 par s 8,200 Accounts payable $18,000 6,800 70,000 80,500 24,000 38,700 $238,000 Total Liabilties and Stockholders Equity $238,000 14,700 Other current liabilities Bonds payable, 1090 19,300 Premium on common stock Retained earnings Total Assets