The financial statements of Morgan Ltd appear below:

Morgan LTD

Comparative Statement of Financial Position

31 December 2018

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Assets 2018 2017

Cash .................................................................................................. $ 25,000 $ 40,000

Marketable securities ........................................................................ 15,000 60,000

Accounts receivable (net) ................................................................. 50,000 30,000

Inventory ........................................................................................... 150,000 170,000

Property, plant and equipment (net) ................................................. 160,000 200,000

Total assets ................................................................................ $400,000 $500,000

Liabilities and equity

Accounts payable ............................................................................. $ 20,000 $ 30,000

Short-term notes payable ................................................................. 40,000 90,000

Bonds payable .................................................................................. 80,000 160,000

Ordinary shares ................................................................................ 170,000 145,000

Retained earnings ............................................................................ 90,000 75,000

Total liabilities and equity............................................................ $400,000 $500,000

Morgan LTD

Income Statement

For the Year Ended 31 December 2018

Net sales ........................................................................................... $360,000

Cost of sales ..................................................................................... 184,000

Gross profit ....................................................................................... 176,000

Expenses

Interest expense ......................................................................... $24,000

Selling expenses ........................................................................ 30,000

Administrative expenses ............................................................ 20,000

Total expenses ..................................................................... 74,000

Profit before income taxes ................................................................ 102,000

Income tax expense ......................................................................... 30,000

Profit .................................................................................................. $ 72,000

Additional information:

a. Cash dividends of $57,000 were declared and paid in 2018.

b. Weighted-average number of shares of ordinary shares outstanding during 2018 was 60,000 shares.

c. Market value of ordinary shares on 31 December 2018 was $18 per share.

d. Net cash provided by operating activities for 2018 was $63,000.

Required

Using the financial statements and additional information, compute the following ratios for Morgan Ltd for 2018. Show all workings.

1. Current ratio

2. Return on ordinary shareholders equity

3. Price-earnings ratio

4. Acid-test/Quick ratio

5. Receivables turnover