Question C4 The statement of financial position and income statement of Jackson Company are shown below: Jackson Company Income Statement For the year ended 31 December 2016 ($ in million) Jackson Company Statements of Financial Position 31 December ($ in million) 2016 Cash 125 Accounts receivable 190 Inventory 172 Prepaid expenses 40 Plant & equipment (net) 238 2015 100 140 148 42 262 560 (224) 336 (186) Net sales Cost of goods sold Gross profit Operating expenses Operating profit Interest expense Profit before taxes Income taxes Net profit 150 765 692 (30) 120 82 64 Incon (38) 82 Accounts payable Income taxes payable Long-term liabilities Ordinary shares Retained earnings 38 194 150 301 765 36 167 150 275 692 Additional information: (1) Market price and par value of Ordinary shares as at 31 December 2016 were $16 and $1.5 per share respectively. (2) The company declared and paid a dividend of $56 million during 2016. (3) Credit sales totalled 80%. Required: (a) Calculate the following ratios of the company for 2016. (Show workings. Express your answers from (v) to (vii) in % and correct ALL answers to 2 decimal places.) (i) Times interest earned (2 marks) (ii) Quick ratio (2 marks) (iii) Account receivable turnover (2 marks) (iv) Price-earnings ratio (2 marks) (v) Return on assets (in %) (2 marks) (2 marks) (vi) Net profit rate (in %) (vii) Dividend yield (in %) (2 marks)