IX. The following financial statements are from Rainey Company:

December 31, 2020 December 31, 2021

Cash 14,000 16,000

Accounts Receivable(net) 22,000 28,000

Inventories 65,000 55,000

Fixed Assets(net) 85,000 79,000

Total Assets 186,000 178,000

====== ======

Accounts Payable 30,000 15,000

Bonds Payable 60,000 75,000

Common Stock(par value $10) 60,000 60,000

Retained Earnings 36,000 28,000

Total Liabilities & Equity 186,000 178,000

====== ======

December 31, 2021

Sales 360,000

Cost of Goods Sold 240,000

Gross Margin 120,000

Operating Expenses(including 20,000 of depn. exp.) 100,000

Income Before Taxes 20,000

Income Taxes 8,000

Income After Taxes 12,000

======

1.Preparecommon-sized statements from the above data.

2.Find the following ratios(rounded to two decimal places):

a)Inventory turnover for 2021

b)The average market price for Rainey stock, if the P/E ratio is 8.

c)The earnings per share

d)The current ratio by the end of 2021

e)Gross Margin percentage for 2021

f)The dividend per share for 2021

g)The dividend payout ratio for 2021