Question
The financial statements of Hampton Company appear below: Hampton Company Comparative Balance Sheet December 31, ASSETS 2009 2008 Cash $ 35,000 $ 40,000 Short-term investments
The financial statements of Hampton Company appear below:
Hampton Company
Comparative Balance Sheet
December 31,
ASSETS | 2009 | 2008 |
Cash | $ 35,000 | $ 40,000 |
Short-term investments | 15,000 | 60,000 |
Accounts receivables | 50,000 | 30,000 |
Inventory | 50,000 | 70,000 |
Property, plant & equip (net) | 250,000 | 300,000 |
Total assets | 400,000 | 500,000 |
LIAB & Stockholders Equity |
| |
Accounts payable | 10,000 | 30,000 |
Short-term notes payable | 40,000 | 90,000 |
Bonds payable | 88,000 | 160,000 |
Common stock | 160,000 | 145,000 |
Retained earnings | 102,000 | 75,000 |
Total Liab & SE | 400,000 | 500,000 |
Hampton Company
Income Statement
For the year ended December 31, 2009
Net Sales | 360,000 | |
Cost of Goods Sold | 198,000 | |
Gross Profit | 162,000 | |
Expenses | ||
Interest Expense | 12,000 | |
Selling Expense | 40,000 | |
Admin. Expense | 59,000 | |
Total Expense | 111,000 | |
Income before income taxes | 51,000 | |
Income tax expense | 15,000 | |
Net Income | 36,000 |
Additional Information:
a. Cash dividends of $9,000 were declared and paid in 2009.
b. Weighted Average number of shares of common stock outstanding during 2008 was 30,000 shares.
c. Market value of common stock on December 31,2009 was $21 per share. Instructions Using the financial statements and additional information, compute the following ratios for Hampton Company for 2009. Show all computations.
1. Current ratio: _________________
2. Return on Common stockholders equity__________________
3. Price-earnings ratio _______________
4. Acid-test ratio _______________
5. Receivables turnover ______________
6. TImes interest earned ______________
7. Profit margin __________----
8. Days in inventory ______________
9. Payout ratio ______________
10. Return on assets ___________
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