Some recent financial statements for Mathison, Inc., follow. MATHISON, INC. Balance Sheets as of December 31, 2020 and 2021 2020 2021 Current assets Cash Accounts receivable Inventory Total Fixed assets Assets Net plant and equipment $5,298 $ 5,827 7,707 12,150 22,956 9,477 $ 25,155 $38,260 $ 75,301 $ 80,149 2020 Liabilities and Owners' Equity Current liabilities Accounts payable Notes payable Other Total Long-term debt Owners' equity Common stock and paid-in surplus Accumulated retained earnings Total 2021 $ 3,754 $ 5,986 2,045 3,055 152 179 $ 5,951 $ 9,220 $22,700 $ 19,000 $ 43,000 $43,000 28,805 47,189 $ 71,805 90,189 Net plant and equipment Total assets Sales Cost of goods sold Depreciation MATHISON, INC. 2021 Income Statement EBIT Interest paid Taxable income Taxes Net income $ 75,301 $ 80,149 Total Dividends $100,456 $118,409 $ 8,473 $ 249,854 204,317 8,730 36,807 2,811 33,996 7,139 $ 26,857 Total liabilities and owners' equity $71,805 $ 90,189 $100,456 $118,409 MATHISON, INC. 2021 Income Statement Sales Cost of goods sold Depreciation EBIT Interest paid Taxable income Taxes Net income Dividends Retained earnings $ 249,854 204,317 8,730 $ 8,473 18,384 36,807 2,811 33,996 7,139 $ 26,857 Short-term solvency ratios Current ratio Quick ratio C. Cash ratio Asset utilization ratios. d. a. b. e. f. Long-term solvency ratios Total debt ratio Debt-equity ratio 9 h. L 1. k. Total asset turnover Inventory turnover Receivables turnover 1. Profitability ratios m. n. Equity multiplier Times interest earned ratio Cash coverage ratio Profit margin Return on assets. Return on equity 2020 4.23 2.19 0.89 0.29 0.40 1.40 times times times 2021 4.15 times 1.66 times 0.63 times 2.11 8.90 26.36 0.24 0.31 1.31 13.09 16.20 18.23 22.68 62.46 times times times times times 45 tim65 times times % % % 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 2021 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 2021? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) a. Price-earnings ratio b. Price-sales ratio C. Dividends per share d. Market-to-book ratio times times times
