Problem 18-2A The comparative statements of Painter Tool Company are presented below. PAINTER TOOL COMPANY Income Statement For the Years Ended December 31 2017 Net sales $1,810,000 Cost of goods sold 1,005,000 Gross profit 805,000 Selling and administrative expenses 511,000 Income from operations 294,000 Other expenses and losses Interest expense 17,000 Income before income taxes 277,000 Income tax expense 80,000 Net income $ 197,000 2016 $1,745,000 970,000 775,000 472,000 303,000 13,000 290,000 76,000 $ 214,000 2016 PAINTER TOOL COMPANY Balance Sheets December 31 Assets 2017 Current assets Cash $59,000 Short-term investments 68,000 $63,000 49,000 PRINTER VERSION 4 BACK $59,000 68,000 116,000 122,000 365,000 595,000 $900,000 $63.000 49,000 101.000 114,000 327,000 515,000 $842,000 Cash Short-term investments Accounts receivable (net) Inventory Total current assets Plant assets (net) Total assets Liabilities and Stockholders' Equity Current liabilities Accounts payable Income taxes payable Total current liabilities Bonds payable Total abilities Stockholders' equity Common stock ($5 par) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity holder $159,000 42,000 201.000 $144,000 41,000 185.000 195,000 380,000 195,000 396,000 275,000 289,000 295,000 167,000 462,000 $842,000 564,000 $960,000 All sales were on account Compute the following ratios for 2017. ( Weighted average common shares in 2017 were 50,000.) (Round Earnings per share, Current ratio and Acid-test ratio to 2 decimal places, eg 1.65 or 1.65:1, and all other answers to I decimal place, e.g. 6.8 or 6.89.) All sales were on account. Compute the following ratios for 2017. (Weighted average common shares in 2017 were 50.000) (Round Earnings per share. Current ratio and Acid-test ratio to 2 decimal places, eg 1.65 or 1.65 and all other answers to I decimal place 6.8 6.8 .) (a) Earnings per share (b) Return on common stockholders' equity (c) Return on assets (d) Current ratio (e) Acid-test ratio (1) Accounts receivable turnover times (o) Inventory turnover (h) Times interest eamed times (1) Asset turnover 0) Debt to assets ratio