I have answered a few, but I don't understand the rest.

Sales revenue. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $210,000

Cost of goods sold. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 125,000

Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,300

Dividends . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,600

Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.15

HI-TECH INSTRUMENTS, INC.

Balance Sheets

(Thousands of Dollars) Dec. 31, 2016 Dec. 31, 2015

Assets

Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 18,300 $ 18,000

Accounts receivable (net). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 46,000 41,000

Inventory. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39,500

43,700

Total Current Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 103,800 102,700

Plant assets (net) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,600 50,500

Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,600

13,800

Total Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $172,000 $167,000

Liabilities and Stockholders Equity

Notes payablebanks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 6,000 $ 6,000

Accounts payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,500 18,700

Accrued liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,500

21,000

Total Current Liabilities. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000 45,700

9% Bonds payable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40,000

40,000

Total Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 85,000 85,700

Common stock, $25 par value (2,000,000 shares). . . . . . . . . . . . . . . . . . . . . . . . . 50,000 50,000

Retained earnings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,000 31,300

Total Stockholders Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. 87,000 81,300

Total Liabilities and Stockholders Equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $172,000 $167,000

Industry Average Ratios for Competitors

Quick ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.3

Current ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2.4

Accounts receivable turnover. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.9 times

Inventory turnover . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3.5 times

Debt-to-equity ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 0.73

Gross profit percentage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.8 percent

Return on sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4.5 percent

Return on assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.6 percent

SE14-1 Quick Ratio Calculate the companys quick ratio for 2016 and compare the result to the industry

average.

(current assets - inventory) / current liabilities
(103,800-39,500)/45,000			1.428888889	1.43

SE14-2. Current Ratio Calculate the companys current ratio for 2016 and compare the result to the indus-

try average.

Current Assets / Current Liabilities
103,800/45,000			2.306666667	2.31

SE14-3. Accounts Receivable Turnover Calculate the companys accounts receivable turnover for 2016

and compare the result to the industry average.

SE14-4. Inventory Turnover Calculate the companys inventory turnover for 2016 and compare the result

to the industry average.

COGS/Average inventory
125,000/((39,500+43,700)/2)
	416000
125,000/41600			3.004807692	3

SE14-5. Debit-to-Equity Ratio Calculate the companys 2016 debt-to-equity ratio and compare the result to

the industry average.

Total liabilities / Total stockholders' equity
85,000/87,000			0.977011494	0.98

SE14-6. Gross Profit Percentage Calculate the companys 2016 gross profit percentage and compare the

result to the industry average.

SE14-7. Return on Sales Calculate the companys return on sales for 2016 and compare the result to the

industry average.

SE14-8. Return on Assets Calculate the companys return on assets for 2016 and compare the result to the

industry average.

SE14-9. Dividends per Share Calculate the companys dividend paid per share of common stock. What was

the dividend payout ratio?

SE14-10. Earnings per Share If the companys most recent price per share of common stock is $62.25, what

is the companys price-earnings ratio and dividend yield?

ANSWER KEY

SE 14-1	1.43
SE 14-2	2.31
SE 14-3	4.83
SE 14-4	3
SE 14-5	0.98
SE 14-6	40.5
SE 14-7	4
SE 14-8	4.9
SE 14-9	$ 1.30
SE 14-9	31.3
SE 14-10	15.1
SE 14-10	2.1