The comparative financial statements prepared at December 31 for Golden Corporation showed the following summarized data:

Current

Previous

Income Statement

Sales revenue

$

185,000

$

169,000

Cost of goods sold

112,000

102,000

Gross profit

73,000

67,000

Operating expenses

54,300

51,200

Interest expense

2,800

2,700

Income before income taxes

15,900

13,100

Income tax expense

4,770

3,100

Net income

$

11,130

$

10,000

Balance Sheet

Cash

$

4,730

$

8,100

Accounts receivable (net)

20,000

23,500

Inventory

41,000

36,000

Property and equipment (net)

46,000

39,000

$

111,730

$

106,600

Current liabilities

$

16,700

$

19,700

Note payable (long-term)

46,000

46,000

Common stock (par $5)

30,600

30,600

Additional paid-in capital

5,200

5,100

Retained earnings*

13,230

5,200

$

111,730

$

106,600

4-a.

Stockholders equity totaled $30,600 at the beginning of the previous year. Compute the return on equity (ROE) ratios for the current and previous years. (Round your answers to 1 decimal place.)

	Return on Equity
Current Year		%
Previous Year	28.0	%

5-a.

Net property and equipment totaled $35,500 at the beginning of the previous year. Compute the fixed asset turnover ratios for the current and previous years. (Round your answers to 2 decimal places.)

	Fixed Asset Turnover
Current Year
Previous Year

6-a.

Compute the debt-to-assets ratios for the current and previous years. (Round your answers to 2 decimal places.)

	Debt-to-Assets
Current Year
Previous Year

7-a.

Compute the times interest earned ratios for the current and previous years. (Round your answers to 1 decimal place.)

	Times Interest Earned
Current Year
Previous Year

8-a.

After Golden released its current years financial statements, the companys stock was trading at $31. After the release of its previous years financial statements, the companys stock price was $22 per share. Compute the P/E ratios for both years. (Round your intermediate calculations and final answers to 2 decimal places.)

	Price/Earnings Ratio
Current Year
Previous Year