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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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