Exercise 188 The financial statements of Hainz Company appear below: HAINZ COMPANY Comparative Balance Sheet December 31 Assets 2019 Cash $20,000 Short-term investments 20,000 Accounts receivable (net) 40,000 Inventory 60,000 Property, plant and equipment (net) 260,000 Total assets $400,000 Liabilities and stockholders' equity Accounts payable $20,000 Short-term notes payable 40,000 Bonds payable 80,000 Common stock 150,000 Retained earnings 110,000 Total liabilities and stockholders' equity $400,000 2018 $40,000 60,000 30,000 70,000 300,000 $500,000 $30,000 90,000 160,000 150,000 70,000 $500,000 HAINZ COMPANY Income Statement For the Year Ended December 31, 2019 Net sales $400,000 Cost of goods sold 250,000 Gross profit 150,000 Expenses Operating expenses $42,000 Interest expense 18,000 Total expenses 60,000 Income before income taxes 90,000 Income tax expense 27,000 Net income $63,000 Additional information: a. Cash dividends of $23,000 were declared and paid in 2019. b. Weighted average number of shares of common stock outstanding during 2019 was 30,000 shares C. Market value of common stock on December 31, 2019, was $21 per share. Using the financial statements and additional information, compute the following ratios for Hainz Company for 2019. (Use 365 days for calculation. Round answers to 1 52.7.) 1. Current ratio 2. Return on common stockholders' equity 3. Price-earnings ratio times 4. Acid-test ratio 5. Accounts receivable turnover times Times interest earned times 7. Profit margin 8. Days in inventory 9. Payout ratio 10. Return on assets