The comparative statements of Villa Tool Company

The comparative statements of Villa Tool Company are presented below.

VILLA TOOL COMPANY
Income Statement

For the Year Ended December 31

20122011
Net sales$1,818,500$1,750,500
Cost of goods sold
1,011,500

996,000

Gross profit807,000754,500
Selling and administrative expense
516,000

479,000

Income from operations291,000275,500
Other expenses and losses
Interest expense
18,000

14,000

Income before income taxes273,000261,500
Income tax expense
81,000

77,000

Net income
$ 192,000

$ 184,500

VILLA TOOL COMPANY
Balance Sheets

December 31

Assets20122011
Current assets
Cash$ 60,100$ 64,200
Short-term investments69,00050,000
Accounts receivable (net)117,800102,800
Inventory
123,000

115,500

Total current assets
369,900

332,500

Plant assets (net)
600,300

520,300

Total assets
$970,200

$852,800

Liabilities and Stockholders’ Equity
Current liabilities
Accounts payable$160,000$145,400
Income taxes payable
43,500

42,000

Total current liabilities
203,500

187,400

Bonds payable
200,000

200,000

Total liabilities
403,500

387,400

Stockholders’ equity
Common stock ($5 par)280,000300,000
Retained earnings
286,700

165,400

Total stockholders’ equity
566,700

465,400

Total liabilities and stockholders’ equity
$970,200

$852,800

Compute the following ratios for 2012. (Weighted average common shares in 2012 were 57,000, and all sales were on account.)(Round earnings per share, current ratio and acid-test ratio to 2 decimal places, e.g. 10.50. Round other answers to 1 decimal place, e.g. 10.5.)

(a)Earnings per share$(b)Return on common stockholders’ equity%(c)Return on assets%(d)Current:1(e)Acid-test:1(f)Receivables turnovertimes(g)Inventory turnovertimes(h)Times interest earnedtimes(i)Asset turnovertimes(j)Debt to total assets%

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