The comparative statements of Jack Frost Company are presented here.

JACK FROST COMPANY Income Statements For the Years Ended December 31 2007 2006 Net sales $1,890,540 $1,750,500 Cost of goods sold 1,058,540 996,000 Gross profit 832,000 754,500 Selling and administrative expenses 506,000 479,000 Income from operations 326,000 275,500 Other expenses and losses Interest expense 25,000 19,000 Income before income taxes 301,000 256,500 Income tax expense 86,000 77,000 Net income $ 215,000 $ 179,500 JACK FROST COMPANY Balance Sheets December 31 Assets Current assets Cash Short-term investments Accounts receivable Inventory Total current assets Plant assets (net)

Total assets Liabilities and Stockholders’ Equity Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders’ equity Common stock ($5 par)

Retained earnings Total stockholders’ equity Total liabilities and stockholders’ equity All sales were on account. Net cash provided by operating activities for 2007 was $240,000.

2007

$ 60,100 74,000 107,800 133,000 374,900 615,300

$990,200

$160,000 43,500 203,500 210,000 413,500 290,000 286,700 576,700

$990,200 2006

$ 64,200 50,000 102,800 115,500 332,500 520,300

$852,800

$145,400 42,000 187,400 200,000 387,400 300,000 165,400 465,400

$852,800 Capital expenditures were $120,000, and cash dividends were $80,000.

Instructions Compute the following ratios for 2007.

(a) Earnings per share. (h) Days in inventory.

(b) Return on common stockholders’ equity. (i) Times interest earned.

(c) Return on assets.

(d) Current ratio.

(e) Receivables turnover.

(f) Average collection period.

(g) Inventory turnover.