The comparative statements of Fraggle Rock Company are shown on page 695.

(SO 6)

FRAGGLE ROCK COMPANY Income Statements For the Years Ended December 31 Net sales Cost of goods sold Gross profit Selling and administrative expense Income from operations Other expenses and losses Interest expense Income before income taxes Income tax expense Net income 2007

$780,000 440,000 340,000 146,880 193,120 7920 183,200 35,000

$148,200 FRAGGLE ROCK COMPANY Balance Sheets December 31 Assets 2007 Current assets Cash $ 23,100 Short-term investments 44,800 Accounts receivable 106,200 Inventory 116,400 Total current assets 290,500 Plant assets (net) 485,300 Total assets $775,800 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $148,200 Income taxes payable 25,300 Total current liabilities 173,500 Bonds payable 132,000 Total liabilities 305,500 Stockholders’ equity Common stock ($10 par) 140,000 Retained earnings 330,300 Total stockholders’ equity 470,300 Total liabilities and stockholders’ equity $775,800 All sales were on account. Net cash provided by operating activities was $94,000. Capital expenditures were $47,000, and cash dividends were $55,000.

Instructions Compute the following ratios for 2007.

(a) Earnings per share.

(b) Return on common stockholders’ equity.

(c) Return on assets.

(d) Current.

(e) Receivables turnover.

(f) Average collection period.

(g) Inventory turnover.