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Financial statements for Cancun Corporation are presented below. Cancun Corporation Comparative Balance Sheet December 31 Assets 2010 2009 Cash $ 120,000 $ 110,000 Accounts receivable

Financial statements for Cancun Corporation are presented below.

Cancun Corporation

Comparative Balance Sheet

December 31

Assets

2010

2009

Cash

$ 120,000

$ 110,000

Accounts receivable (net)

135,000

95,000

Inventory

270,000

240,000

Property, plant, and equipment (net)

750,000

800,000

Total assets

$1,275,000

$1,245,000

Liabilities and Stockholders' Equity

Accounts payable

$ 152,000

$ 208,000

Accrued liabilities

12,000

16,000

Bonds payable, 10 percent

160,000

160,000

Common stock, $10 par

500,000

500,000

Retained earnings

451,000

361,000

Total liabilities and stockholders' equity

$1,275,000

$1,245,000

Cancun Corporation

Income Statement

For the Year Ended December 31, 2010

Net sales

$1,200,000

Cost of goods sold

700,000

Gross margin

$ 500,000

Operating expenses
Depreciation expense

$ 70,000

Interest expense

10,000

Other expenses

260,000

340,000

Income before income taxes

$ 160,000

Income taxes expense

40,000

Net income

$ 120,000

Note: Dividends of $0.60 per share were declared and paid during 20x8. The market price of the stock on December 31, 2010 was $18.00 per share. Compute the following for 2010 and place your answers in the spaces provided. Round answers to two decimal places. Show your work.

Quick ratio Days' payable
Days' sales uncollected Debt to equity ratio
Profit margin Price/earnings (P/E) ratio
Return on assets Dividends yield

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