The financial data of Sampson Company for the years 2010 and 2011 are as shown below:

Statement of income

Year ending December 31

2010 2011

Sales 12,000 19,000

Cost of sales 7,200 12,000

Depreciation expense 1,200 1,500

Sales, general and administration expense 700 1,000

Interest expense 1,300 1,200

Income before taxes 1,600 3,300

Income taxes expense 700 1,440

Net income 900 1,860

Statement of financial position

As at December 31

2010 2011

Assets

Cash 2,000 2,200

Accounts receivable 3,000 3,500

Inventory 4,000 4,200

Current assets 9,000 9,900

Noncurrent assets at cost 22,000 24,300

Accumulated depreciation (9,000) (10,500)

Net non current assets 13,000 13,800

Total assets 22,000 23,700

Liabilities and equity

Accrued expenses 1,600 1,760

Accounts payable 2,400 2,640

Current liabilities 4,000 4,400

Notes payable 11,000 11,800

Long term debt 4,000 3,204

Common stock 2,000 2,300

Retained earnings 1,000 1,996

Total liabilities and equity 22,000 23,700

Required:

1. Calculate the following ratios for 2011

1. Activity Ratios

1. Inventory turnover
2. Accounts receivable turnover
3. Noncurrent asset turnover
4. Total asset turnover

2. Liquidity ratios

1. Current ratio
2. Quick ratio
3. Cash ratio

3. Solvency ratios

1. Debt to equity
2. Debt to capital
3. Times interest earned

4. Profitability ratios

1. Gross margin
2. Operating income to sales
3. Return on sales
4. Return on assets
5. Return on equity (15 marks)