Addison Company€™s stock is quoted at $16 per share at December 31, 2012 and 2011. Addison€™s financial statements follow.

Required
Based on the preceding information, compute the following for 2012 only.
a. Current ratio
b. Quick (acid-test) ratio
c. Average days to collect accounts receivable, assuming all sales on account
d. Inventory turnover
e. Book value per share of common stock
f. Earnings per share on common stock
g. Price-earnings ratio on common stock
h. Debt to assets ratio
i. Return on investment
j. Return on equity

Transcribed Image Text:

ADDISON COMPANY Balance Sheets As of December 31 (In thousands) 2012 2011 Assets Current assets Cash Marketable securities at cost which approximates market Accounts receivable, net of allowance for doubtful accounts Inventories, lower of cost or market Prepaid expenses Total current assets $ 3,000 $ 2,000 5,000 4,000 44,000 60,000 1,000 47,000 50,000 2,000 107,000 100,000 1,000 3,000 111,000 105,000 1,000 2,000 Property, plant, and equipment, net of accumulated depreciation Investments Long-term receivables Goodwill and patents, net of accumulated amortization Other assets 2,000 4,000 2,000 3,000 Total assets $215,000 S226,000 Liabilities and Stockholders' Equity Current liabilities $ 3,000 12,000 $ 5,000 16,000 11,000 1,000 2,000 Notes payable Accounts payable Accrued expenses Income taxes payable Payments due within one year 9,000 1,000 3,000 Total current liabilities 28,000 50,000 30,000 35,000 60,000 27,000 4,000 Long-term debt Deferred income taxes Other liabilities 5,000 Total liabilities 113,000 126,000 continued 2012 2011 Stockholders' equity 5% cumulative preferred stock, par value $100 per share; $100 liquidating value; authorized 250,000 shares; issued and outstanding 200,000 shares Common stock, no par, 10,000,000 shares authorized and 5,000,000 shares issued and outstanding Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 20,000 20,000 40,000 42,000 40,000 40,000 102,000 100,000 $215,000 $226,000