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The financial statements of Hainz Company appear below: HAINZ COMPANY Comparative Balance Sheet December 31 2016 Assets 2017 Cash $40,000 $20,000 Short-term investments 60,000 20,000

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The financial statements of Hainz Company appear below: HAINZ COMPANY Comparative Balance Sheet December 31 2016 Assets 2017 Cash $40,000 $20,000 Short-term investments 60,000 20,000 Accounts receivable (net) 40,000 30,000 Inventory 70,000 60,000 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 40,000 90,000 Bonds payable 80,000 160,000 Common stock 150,000 150,000 Retained earnings 110,000 70,000 Total liabilities and stockholders' equity $400,000 $500,000 HAINZ COMPANY Income Statement For the Year Ended December 31, 2017 Net sales $400,000 Cost of goods sold 250,000 Gross profit 150,000 Expenses Operating expenses $42,000 Interest expense 18,000 Total expenses 60,000 Income before income taxes 90,000 Income tax expense 27,000 Net income $63,000 Additional information: Cash dividends of $23,000 were declared and paid in 2017 b. Weighted-average number of shares of common stock outstanding during 2017 was 30,000 shares Market value of common stock on December 31, 2017, was $21 per share. c. Using the financial statements and additional information, compute the following ratios for Hainz Company for 2017. (Use 365 days for calculation. Round answers to 1 decimal place, e.g. 52.7.) 1. Current ratio Return on common stockholders' equity % 2 Price-earnings ratio 3. times Acid-test ratio Accounts receivable turnover times Times interest earned times 6 % Proft margin 7 days Days in inventory % Payout ratio 9 % 10. Return on assets

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