18. Comprehensive Ratio Analysis LO4, 5, 6 The 2012 financial statements for the Griffin Company are as follows: Griffin Company Statement of Financial Position 12/31/12 12/31/11 Assets Cash $ 40,000 $ 10,000 Accounts receivable 30,000 55,000 Inventory 110,000 70,000 Property, plant, and equipment 250,000 257,000 Total assets $430,000 $392,000 Liabilities and Stockholders' Equity Current liabilities $ 60,000 $ 50,000 5% mortgage payable 120,000 162,000 Common stock (30,000 shares) 150,000 150,000 Retained earnings 100,000 30,000 Total liabilities and stockholders' equity $430,000 $392,000Griffin Company Income Statement For the Year Ended December 31, 2012 Sales on account $420,000 Less expenses: Cost of goods sold $214,000 Salary expense 50,000 Depreciation expense 7,000 Interest expense 9,000 Total expenses $280,000 Income before taxes $140,000 Income tax expense (50% ) 70,000 Net income $ 70,000 Required Compute the following ratios for the Griffin Company for the year ending December 31, 2012: A. Profit margin ratio (before interest and taxes) B. Total asset turnover C. Rate of return on total assets D. Rate of return on common stockholders' equity E. Earnings per share of stock F. Inventory turnover G. Current ratio H. Quick ratio 1. Accounts receivable turnover J. Debt-to-equity ratio K. Times interest earned