6. Ratio computation. The financial statements of the Lone Pine Company follow.
	LONE PINE COMPANY
	Comparative Balance Sheets
	December 31, 20X2 and 20X1 ($000 Omitted)
	20X2	20X1
	Assets
	Current Assets
	Cash and Short-Term Investments	$400	$600
	Accounts Receivable (net)	3,000	2,400
	Inventories	3,000	2,300
	Total Current Assets	$6,400	$5,300
	Property, Plant, and Equipment
	Land	$1,700	$500
	Buildings and Equipment (net)	1,500	1,000
	Total Property, Plant, and Equipment	$3,200	$1,500
	Total Assets	$9,600	$6,800
	Liabilities and Stockholders Equity
	Current Liabilities
	Accounts Payable	$2,800	$1,700
	Notes Payable	1,100	1,900
	Total Current Liabilities	$3,900	$3,600
	Long-Term Liabilities
	Bonds Payable	4,100	2,100
	Total Liabilities	$8,000	$5,700
	Stockholders Equity
	Common Stock	$200	$200
	Retained Earnings	1,400	900
	Total Stockholders Equity	$1,600	$1,100
Total Liabilities and Stockholders Equity	$9,600	$6,800
	LONE PINE COMPANY
	Statement of Income and Retained Earnings
	For the Year Ending December 31,20X2 ($000 Omitted)
	Net Sales*	$36,000
	Less: Cost of Goods Sold	$20,000
	Selling Expense	6,000
	Administrative Expense	4,000
	Interest Expense	400
	Income Tax Expense	2,000	32,400
	Net Income	$3,600
	Retained Earnings, Jan. 1	900
	Ending Retained Earnings	$4,500
	Cash Dividends Declared and Paid	3,100
	Retained Earnings, Dec. 31	$1,400
	*All sales are on account.

Instructions

Compute the following items for Lone Pine Company for 20X2, rounding all calculations to two decimal places when necessary:

a. Quick ratio

b. Current ratio

c. Inventory-turnover ratio

d. Accounts-receivable-turnover ratio

e. Return-on-assets ratio

f. Net-profit-margin ratio

g. Return-on-common-stockholders equity

h. Debt-to-total assets

i. Number of times that interest is earned