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2016 Sales revenue $210,000 Cost of goods sold 125,000 Net income 8,300 Dividends 2,600 Earnings per share 4.15 Hi-Tech Instruments, Inc. Balance Sheet (Thousands of

2016
Sales revenue $210,000
Cost of goods sold 125,000
Net income 8,300
Dividends 2,600
Earnings per share 4.15
Hi-Tech Instruments, Inc. Balance Sheet

(Thousands of Dollars)

Dec. 31, 2016 Dec. 31, 2015
Assets
Cash $58,300 $18,000
Accounts receivable (net) 46,000 41,000
Inventory 39,500 43,700
Total current assets 143,800 102,700
Plant assets (net) 52,600 50,500
Other assets 15,600 13,800
Total assets $212,000 $167,000
Liabilities and Stockholders' Equity
Notes payable-banks $6,000 $6,000
Accounts payable 22,500 18,700
Accrued liabilities 16,500 21,000
Total current liabilities 45,000 45,700
9% Bonds payable 80,000 40,000
Total liabilities 125,000 85,700
Common stock, $25 par value (2,000,000 shares) 50,000 50,000
Retained earnings 37,000 31,300
Total stockholders' equity 87,000 81,300
Total liabilities and stockholders' equity $212,000 $167,000
Industry Average Ratios for Competitors
Quick ratio 1.3
Current ratio 2.4
Accounts receivable turnover 5.9 times
Inventory turnover 3.5 times
Debt-to-equity ratio 0.73
Gross profit percentage 42.8 percent
Return on sales 4.5 percent
Return on assets

7.6 percent

return on assets: calculate the company's return on assets for 2016.

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