Current ratio: 2.0 to 1

Acid-test ratio: -1.5 to 1

Debt/equity ratio: 2.5 to 1

Inventory turnover: 2.5 times

Accounts receivable turnover: 5.5 times

Times interest earned: 4.65 times

Gross profit ratio: 30%

Return on investment: 10.34%

Earnings per share: $ 3.99

All sales during the year were made on account. Cash collections during the year exceeded sales by $14,000, and no uncollectible

accounts were written off.

The balance of the accounts receivable account was $56,000 on January 1, 2020.

No common stock was issued during the year.

Dividends declared and paid during the year were $5,202

The balance of the inventory account was $111,420 on January 1, 2020.

Interest expense on the income statement relates to the 12% bonds payable; $10,000 of these bonds were issued on May 1, 2020:

the remaining amount of bonds payable were outstanding throughout the year. All bonds were issued at face amount.

WHITTAKER INC. Income Statement For the Year Ended December 31, 2020 Sales Cost of goods sold Gross profit Operating expenses Income from operations Interest expense Income before taxes Income taxes (25%) Net income WHITTAKER INC. Balance Sheet December 31, 2020 Current assets: Cash Accounts receivable, net Inventory Total current assets Property, plant, and equipment, net $ 158,000 Total assets 64,000 Current liabilities Bonds payable, 12% Total liabilities Stockholders' equity: Common stock, $4 par value Additional paid-in capital Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ $ 20,000 30,000