MATHISON, INC. Balance Sheets as of December 31, 2018 and 2019 2018 2019 2018 2019 Assets Liabilities and Owners' Equity Current assets Current liabilities Cash $ 5,298 $ 5,827 Accounts payable $ 3,754 $ 5,986 Accounts receivable 7,707 9,477 Notes payable 2,045 3,055 Inventory 12,150 22,956 Other 152 179 Total $ 25,155 $ 38,260 Total $ 5,951 $ 9,220 $ 22,700 $ 19,000 Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings 43,000 $ 43,000 28,805 47,189 Fixed assets Net plant and equipment $ 75,301 $ 80,149 Total $ 71,805 $ 90,189 Total assets $100,456 $ 118,409 Total liabilities and owners' equity $100,456 $ 118,409 MATHISON, INC. 2019 Income Statement Sales $ 249,854 Cost of goods sold 204,317 Depreciation 8,730 MATHISON, INC. 2019 Income Statement Sales $ 249,854 Cost of goods 204,317 sold Depreciation 8,730 $ EBIT Interest paid 36,807 2,811 $ Taxable income Taxes 33,996 7,139 Net income $ 26,857 $ 8,473 Dividends Retained earnings 18,384 Find the following financial ratios for Mathison, Inc. (use year-end figures rather than average values where appropriate): (Do not round Intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter the profit margin, return on assets, and return on equity as a percent.) 2018 2019 times times times times times times times times times Short-term solvency ratios a. Current ratio b. Quick ratio c. Cash ratio Asset utilization ratios d. Total asset turnover e. Inventory turnover f. Receivables turnover Long-term solvency ratios 9. Total debt ratio h. Debt-equity ratio i. Equity multiplier 1. Times interest earned ratio k. Cash coverage ratio Profitability ratios 1. Profit margin m. Return on assets n. Return on equity times times times times times % % % earnings Construct the DuPont identity for Mathison, Inc. (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16. Enter your profit margin and return on equity answers as a percent.) Profit margin Total asset turnover Equity multiplier Return on equity % times times % Mathison, Inc. has 10,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2019 was $27. a. What is the price-earnings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What is the price-sales ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What are the dividends per share? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) d. What is the market-to-book ratio at the end of 2019? (Do not round Intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) times times a. Price-earnings ratio b. Price-sales ratio Dividends per share d. Market-to-book ratio c. times
