The following data apply to items

(a) through (g):

JOHANSON COMPANY Statement of Financial Position December 31, 2000 and 2001

(In thousands) 2000 2001 Assets Current assets:

Cash and temporary investments $ 380 $ 400 Accounts receivable (net) 1,500 1,700 Inventories 2,120 2,200 Total current assets 4,000 4,300 Long-term assets:

Land 500 500 Building and equipment (net) 4,000 4,700 Total long-term assets 4,500 5,200 Total assets $8,500 $9,500 Liabilities and Equities Current liabilities:

Accounts payable $ 700 $1,400 Current portion of long-term debt 500 1,000 Total current liabilities 1,200 2,400 Long-term debt 4,000 3,000 Total liabilities 5,200 5,400 Stockholders’ equity:

Common stock 3,000 3,000 Retained earnings 300 1,100 Total stockholders’ equity 3,300 4,100 Total liabilities and equities $8,500 $9,500 JOHANSON COMPANY Statement of Income and Retained Earnings For the Year Ended December 31, 2001

(In thousands)

Net sales $28,800 Less: Cost of goods sold $15,120 Selling expenses 7,180 Administrative expenses 4,100 Interest 400 Income taxes 800 27,600 Net income 1,200 Retained earnings, January 1 300 Subtotal 1,500 Cash dividends declared and paid 400 Retained earnings, December 31 $ 1,100 Required Answer the following multiple-choice questions:

a.The acid-test ratio for 2001 is 1. 1.1 to 1 4. .2 to 1 2. .9 to 1 5. .17 to 1 3.1.8 to 1 b.The average number of days’ sales outstanding in 2001 is 1.18 days 4.4.4 days 2.360 days 5.80 days 3.20 days c.The times interest earned ratio for 2001 is 1. 3.0 times 4. 2.0 times 2. 1.0 times 5. 6.0 times 3.72.0 times d.The asset turnover in 2001 is 1. 3.2 times 4. 1.1 times 2. 1.7 times 5. .13 times 3..4 times e.The inventory turnover in 2001 is 1. 13.6 times 4. 7.0 times 2. 12.5 times 5. 51.4 times 3..9 times f.The operating income margin in 2001 is 1. 2.7% 4. 95.8%

2. 91.7% 5. 8.3%

3.52.5%

g.The dividend payout ratio in 2001 is 1.100% 4.8.8%

2.36% 5.33.3%

3.20%

CMA Adapted