Sweeney Manufacturing
Income Statement
For the Year Ended December 31, 2021
Sales (all on credit)	$ 400,000
Cost of goods sold	170,000
Gross margin	230,000
General and administrative expenses	55,000
Selling expenses	30,000
Depreciation expense	25,000
Earnings before interest and taxes	120,000
Interest expense	10,000
Earnings before taxes	110,000
Tax expense	27,000
Earnings after taxes	$ 83,000
Sweeney Manufacturing
Balance Sheet
December 31, 2021
Assets
Cash	$ 27,000
Accounts receivable (net)	45,000
Inventory	285,000
Total current assets	357,000
Property, plant and equipment (net)	240,000
Total assets	$ 597,000
Liabilities and Shareholders' Equity
Accounts payable	$ 38,000
Taxes payable	15,000
Current portion of long term debt	10,000
Total current liabilities	63,000
Long term debt	200,000
Total liabilities	263,000
Shareholders' equity
Preferred Stock (Note 1)	40,000
Common Stock (Note 2)	33,600
Retained earnings	260,400
Total shareholder's equity	334,000
Total liabilities and shareholders' equity	$ 597,000
Note 1: $5.00 non-cumulative preferred shares, 2,000 shares outstanding
Note 2: 6,000 common shares outstanding

Required:

1) Using the above financial statements, calculate the following ratios (14 marks - 2 marks each):

a) Profit Margin

b) Return on Equity

c) Current ratio

d) Receivables Turnover

e) Quick Ratio

f) Total Debt to Total Assets

g) Times Interest Earned

2) The company paid a total of $31,000 in dividends in the 2021. Calculate the dividend per common share in 2021 (2 marks)

3) Calculate the company's earnings per share (EPS) in 2021 (2 marks)

4) Assuming the common shares were trading at a price-earnings ratio of 2.2 X on March 31, 2021, calculate the market price per common share (1 mark)

5) Calculate the book value per common share (2 marks)