The financial statements of Raiders Company appear below:

Supertramp COMPANY

Comparative Balance Sheet

December 31,

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Assets 2020 2019

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

Debt investments .............................................................................. 20,000 60,000

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

Inventory ........................................................................................... 140,000 170,000

Property, plant and equipment (net) .................................................. 170,000 200,000

Total assets ................................................................................ $405,000 $500,000

Liabilities and stockholders' equity

Accounts payable ............................................................................. $ 25,000 $ 30,000

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

Bonds payable .................................................................................. 75,000 160,000

Common stock ................................................................................... 160,000 145,000

Retained earnings ............................................................................. 105,000 75,000

Total liabilities and stockholders' equity....................................... $405,000 $500,000

Supertramp COMPANY

Income Statement

For the Year Ended December 31, 2020

Net sales (all on credit) ..................................................................... $360,000

Cost of goods sold ............................................................................ 184,000

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

Expenses

Interest expense ......................................................................... $11,000

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

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

Total expenses ..................................................................... 61,000

Income before income taxes ............................................................. 115,000

Income tax expense .......................................................................... 35,000

Net income ........................................................................................ $ 80,000

Additional information:

a. Cash dividends of $50,000 were declared and paid on common stock in 2020.

b. Weighted-average number of shares of common stock outstanding during 2020 was 50,000 shares.

c. Market price of common stock on December 31, 2020, was $16 per share.

d. Net cash provided by operating activities for 2020 was $70,000.

Instructions

Using the financial statements and additional information, compute the following ratios for the Supertramp Company for 2020. You Must show all computations.

1. Current ratio __3.62______.

2. Return on common stockholders' equity _32.99%________.

3. Price-earnings ratio ___10______.

4. Inventory turnover ____1.19_____.

5. Accounts receivable turnover _____9____.

6. Times interest earned ____9.45_____.

7. Profit margin ___22.22%______.

8. Days in inventory _____307.5____.

9. Payout ratio ____62.5%_____.

10. Return on assets _____17.68%____.