Problem 5 The comparative statements of Harry Connick, Jr., Company are presented here. Harry Connick, Jr., Company Income Statements For the Years Ended December 31 Net sales Cost of goods sold 2019 $ 1,918,500 1,005,500 2018 $1,750,000 996,000 Gross Profit Selling and Administrative Expenses 913,000 506,000 754,500 479,000 407,000 275,500 Income from operations Other expenses & losses Interest expense 28,000 19,000 Income before income taxes Income tax expense 379,000 86,700 256,500 77,000 Net income $ 292,300 $ 179,500 Harry Connick, Jr., Company Balance Sheet December 31 2019 2018 Assets Current Assets Cash Short-term investments Accounts receivable (net) Inventory $ 60,100 54,000 107,800 143,000 $ 64,200 50,000 102,800 115,500 Total Current Assets 364,900 332,500 Plant assets (net) 625,300 520,300 Total Assets $ 990,200 $852,800 Liabilities & Stockholders' Equity Current liabilities Accounts payable Income taxes payable Total current liabilities $ 170,000 43,500 $ 145,400 42,000 213,500 187,400 Bonds payable 210,000 200,000 Total liabilities 423,500 387,400 Stockholders' Equity Common stock ($5 par) Retained earnings $ 280,000 286,700 $ 300,000 165,400 Total stockholders' equity 566,700 465,400 Total liabilities & stockholders' equity $ 990,200 $ 852,800 On July 1, 2019, 4,000 shares were repurchased and canceled. All sales were on account. Net cash provided by operating activities for 2019 was $280,000. Instructions Compute the following ratios for 2019 (a) Earnings per share (b) Return on common stockholders' equity (c) Return on assets (d) Current ratio (e) Acid-test (f) Receivables turnover (g) Average collection period (h) Inventory turnover (i) Days in inventory 6) Times interest earned (k) Debt to total assets