Madison Company Balance Sheet June 30
Assets
Current assets:
Cash				$	19,000
Accounts receivable, net					230,000
Merchandise inventory					310,000
Prepaid expenses					11,000
Total current assets					570,000
Plant and equipment, net					900,000
Total assets				$	1,470,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities				$	240,000
Bonds payable, 11%					350,000
Total liabilities					590,000
Stockholders equity:
Common stock, $10 par value	$	150,000
Retained earnings		730,000
Total stockholders equity					880,000
Total liabilities and stockholders' equity				$	1,470,000

Madison Company Income Statement For the Year Ended June 30
Sales	$	2,800,000
Cost of goods sold		1,228,500
Gross margin		1,571,500
Selling and administrative expenses		580,000
Net operating income		991,500
Interest expense		38,500
Net income before taxes		953,000
Income taxes		285,900
Net income	$	667,100

Account balances at the beginning of the companys fiscal year were: accounts receivable, $170,000; and inventory, $320,000. All sales were on account.

Required:

Compute financial ratios as follows:

1.	Gross margin percentage. (Round your answer to the nearest whole percent.)

Gross margin percentage

%

2.	Current ratio. (Round your answer to 2 decimal places.)

Current ratio

3.	Acid-test ratio. (Round your answer to 2 decimal places.)

Acid-test ratio

4.	Average collection period. (Use 365 days in a year. Round your answer to 1 decimal place.)

Average collection period

days

5.	Average sale period. (Use 365 days in a year. Do not round intermediate calculations. Round your final answer to 1 decimal place.)

Average sale period

days

6.	Debt-to-equity ratio. (Round your answer to 2 decimal places.)

Debt-to-equity ratio

7.	Times interest earned. (Round your answer to 1 decimal place.)

Times interest earned

8.	Book value per share. (Round your answer to the nearest dollar amount.)

Book value per share

$

Account balances at the beginning of the companys fiscal year were: accounts receivable, $170,000; and inventory, $320,000. All sales were on account.

Required:

Compute financial ratios as follows:

1.	Gross margin percentage. (Round your answer to the nearest whole percent.)

Gross margin percentage

%

2.	Current ratio. (Round your answer to 2 decimal places.)

Current ratio

3.	Acid-test ratio. (Round your answer to 2 decimal places.)

Acid-test ratio

4.	Average collection period. (Use 365 days in a year. Round your answer to 1 decimal place.)

Average collection period

days

5.	Average sale period. (Use 365 days in a year. Do not round intermediate calculations. Round your final answer to 1 decimal place.)

Average sale period

days

6.	Debt-to-equity ratio. (Round your answer to 2 decimal places.)

Debt-to-equity ratio

7.	Times interest earned. (Round your answer to 1 decimal place.)

Times interest earned

8.	Book value per share. (Round your answer to the nearest dollar amount.)

Book value per share

$