Computing and Using Common Ratios The following information is for the year 2009 for Millard Company and Grantsville Company, which are in the same industry:

Required:
Compute the following:
1. Current ratio 4. Asset turnover 2. Debt ratio 5. Return on equity 3. Return on sales 6. Price-earnings ratio

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Current assets Long-term assets Current liabilities Long-term liabilities Sales Net income Market price per share Number of shares outstanding Millard Grantsville $20,000 $75,000 $40,000 $140,000 $8,000 $60,000 $15,000 $110,000 $200,000 $850,000 $4,000 $10,000 $15 $50 6,000 shares 3,000 shares