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			2016
Net sales		$1,810,600			$1,746,200
Cost of goods sold		1,012,200			984,000
Gross profit		798,400			762,200
Selling and administrative expenses		515,200			479,600
Income from operations		283,200			282,600
Other expenses and losses
Interest expense		17,300			13,300
Income before income taxes		265,900			269,300
Income tax expense		80,600			76,300
Net income		$ 185,300			$ 193,000

PAINTER TOOL COMPANY Balance Sheets December 31
Assets		2017			2016
Current assets
Cash		$59,500			$63,100
Short-term investments		68,200			49,800
Accounts receivable (net)		117,100			102,100
Inventory		124,000			114,400
Total current assets		368,800			329,400
Plant assets (net)		598,600			519,300
Total assets		$967,400			$848,700
Liabilities and Stockholders Equity
Current liabilities
Accounts payable		$159,200			$144,800
Income taxes payable		43,800			41,200
Total current liabilities		203,000			186,000
Bonds payable		201,600			201,600
Total liabilities		404,600			387,600
Stockholders equity
Common stock ($5 par)		278,300			299,200
Retained earnings		284,500			161,900
Total stockholders equity		562,800			461,100
Total liabilities and stockholders equity		$967,400			$848,700

All sales were on account. Compute the following ratios for 2017. (Weighted-average common shares in 2017 were 55,100.) (Round Earnings per share, Current ratio and Acid-test ratio to 2 decimal places, e.g. 1.65 or 1.65:1, and all other answers to 1 decimal place, e.g. 6.8 or 6.8%.)

(a)		Earnings per share		$
(b)		Return on common stockholders equity			%
(c)		Return on assets			%
(d)		Current ratio			:1
(e)		Acid-test ratio			:1
(f)		Accounts receivable turnover			times
(g)		Inventory turnover			times
(h)		Times interest earned			times
(i)		Asset turnover			times
(j)		Debt to assets ratio			%