The financial statements of Giant Company appear below:

GIANT COMPANY

Comparative Statements of Financial Position

December 31, 2020 and 2019

Assets 2020 2019_

Cash $ 25,000 $ 40,000

Short-term investments 15,000 60,000

Accounts receivable (net) 50,000 30,000

Inventory 50,000 70,000

Property, plant and equipment (net) 260,000 300,000

Total assets $400,000 $500,000

Liabilities and stockholders' equity

Accounts payable $ 20,000 $ 30,000

Short-term notes payable 30,000 90,000

Bonds payable 90,000 160,000

Share capital - Ordinary 150,000 150,000

Retained earnings 110,000 70,000

Total liabilities and stockholders' equity $400,000 $500,000

GIANT COMPANY

Income Statement

For the Year Ended December 31, 2020

Net sales $400,000

Cost of goods sold 240,000

Gross profit 160,000

Expenses

Operating expenses $42,000

Interest expense 18,000

Total expenses 60,000

Income before income taxes 100,000

Income tax expense 30,000

Net income $ 70,000

Additional information:

a. Cash dividends of $23,000 were declared and paid in 2020.

b. Weighted-average number of ordinary shares stock outstanding during 2020 was 30,000 shares.

c. Market value of ordinary shares on December 31, 2020, was $21 per share.

Required:

Using the financial statements and additional information, compute the following ratios for Giant Company for 2020. Show all computations.

Computations

1. Current ratio _________.

2. Return on ordinary shareholders' equity _________.

3. Price-earnings ratio _________.

4. Acid-test ratio _________.

5. Receivables turnover _________.

6. Times interest earned _________.

7. Profit margin _________.

8. Days sales in inventory _________.

9. Dividend yield _________.

10. Return on assets _________.