The condensed financial statements of Indigo Company for the years 2017-2018 are presented below:

Indigo Company

Comparative Balance Sheets

As of December 31, 2017 and 2018

2018 2017

Cash $ 630,000 $ 180,000

Accounts receivable (net) 540,000 450,000

Inventories 570,000 510,000

Plant and equipment 2,700,000 1,608,000

Accumulated depreciation (390,000) (228,000)

$4,050,000 $2,520,000

Accounts payable $ 510,000 $ 240,000

Dividends payable -0- 60,000

Bonds payable 600,000 -0-

Common stock ($10 par) 2,280,000 1,800,000

Retained earnings 660,000 420,000

$4,050,000 $2,520,000

Additional data:

Market value of stock at 12/31/18 is $80 per share.

Indigo sold 48,000 shares of common stock at par on July 1, 2018.

Indigo Company

Condensed Income Statement

For the Year Ended December 31, 2018

Sales revenue $3,600,000

Cost of goods sold 2,475,000

Gross profit 1,125,000

Administrative and selling expenses 750,000

Net income $ 375,000

Instructions

Compute the following financial ratios by placing the proper amounts in the parentheses provided for numerators and denominators.

g. Return on common stock holders equity in 2018 ( )

( )

h. Price earnings ratio at 12/31/18 ( )

( )

i. Debt to assets at 12/31/18 ( )

( )

j. Book value per share at 12/31/18 ( )