Accounting Principles Homework Problems Chapter 18 1. The comparative statements of shorter Company are presented below. Shorter Company Income Statement For the Years Ended March 31 2020 2019 $1,750,500 996,000 754,500 479,000 275,500 Net sales Cost of goods sold Gross profit Selling and administrative expenses Income from operations Other expenses and losses: Interest expense Income before income taxes Income tax expense Net income $1,818,500 1,011,500 807,000 499,000 308,000 18,000 290,000 87,000 $ 203.000 14,000 261,500 77,000 $ 184,500 Shorter Company Balance Sheets March 31 2020 2019 Assets Current assets Cash Short-term investments Accounts receivable (net) Inventory Total current assets Plant assets (net) Total assets $ 60,100 69,000 107,800 133,000 369,900 600,300 970.200 64,200 50,000 102,800 115,500 332,500 520,300 852.800 $ $ $ Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Total liabilities Stockholders' Equity Common stock ($5 par) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 160,000 43,500 203,500 200,000 403,500 145,400 42,000 187,400 200,000 387,400 280,000 286,700 566,700 $ 970.200 300,000 165,400 465,400 $ 852.800 All sales were on account. Instructions Compute the following ratio for 2020. The average common shares of stock in 2020 was 57,000. a. Current ratio c. Accounts receivable turnover d. Inventory turnover e. Asset turnover f. Debt to assets ratio g. Times interest earned h. Earnings per share i. Return on common stockholders' equity j. Return on assets