A d Test Bank for Accounting Principles, Ninth Edition PART IL-RATIO ANALYSIS (27 points) ancial statements for Franklin Corporation are presented below FRANKLIN CORPORATION Comparative Balance Sheet December 31 2009 2010 Assets Cash Accounts receivable (net) Inventory Land Machinery Accumulated depreciation..... Total assets. Liabilities and Stockholders' Equity Accounts payable Long-term notes payable ... Common stock ($10 par value) Retained earnings.. Total liabilities and stockholders' equity $ 4,000 16.000 20,000 28.000 62.000 (20,000 $110.000 $ 6,000 12.000 18,000 8,000 60,000 (14.000 $90.000 $ 10,000 34.000 50,000 16.000 $110.000 $16.000 19.000 50,000 5.000 $90.000 FRANKLIN CORPORATION Income Statement For the year ended December 31, 2010 Sales .... $370,000 Less: Sales returns and allowances 10,000 Net sales. $360,000 Cost of goods sold ..... 275.000 Gross profit 85,000 Selling expenses .... 26,000 Administrative expenses 14,000 Income before income taxes 45,000 Income tax expense 18,000 Net income $ 27.000 Additional Information: All sales were on account. The market price of Franklin's common stock was $35 on December 31, 2009, and $42 on December 31, 2010. instruction ructions: Compute the indicated ratios at December 31, 2010. of tot cember 31, 2010, as appropriate. Report answers to one decimal place December 31, 201 Achievement Teste ATS-S or for the year ended 1. Profit margin is 2. Acid-test ratio is 3. Return on assets is 4. Payout ratio is 5. Receivables turnover is 6. Asset turnover is 7. Debt to total assets ratio is 8. Price-earnings ratio is 9. Current ratio is