Cash dividends of $50,000 were declared and paid in 2007.
Weighted average number of shares of common stock outstanding during 2007 were 62,000 shares.
Market value of common stock on December 31,2007 was $15 per share.
Net cash provided by operating activities for 2007 was $65,000.
Using the financial statements and additional information, compute the following ratios for the Mugs Company for 2007. You need to label your ratios and show your calculations for maximum credit.
Current ratio
Return on common stockholders' equity
Price-earnings ratio
Inventory turnover ratio
Average days in inventory
Receivable turnover
Average days to collect receivables
Profit margin ratio
Payout ratio
Return on assets

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Mugs Company December 31, 2007 2006 Assets Cash Marketable securities Accounts Receivable (net) s25,000 40,000 40,000 30,000 150,000 170,000 170000 200000 Total Assets Accounts payable Bond Interest payable Bonds payable Common Stock Retained earnings Total liabilities and stockholders equity $405,000$500,000 $ 25,00030,000 75.000 160,000 175,000 145,000 9000075000 Mugs Company Income Statement For the Year Ended 12/31/07 Net Sales Cost of goods sold Gross profit Expenses $21,000 Selling Expense Administrative Expenses Total expenses Income before income 30,000 71000 105,000 Income tax expense 30000