The financial statements of the Precious Company appear below:

PRECIOUS 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 shares ............................................................................	160,000	145,000
Retained earnings .........................................................................	105,000	75,000
Total liabilities and shareholders' equity ...................................	$405,000	$500,000

PRECIOUS 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:

1. Cash dividends of $50,000 were declared and paid on common stock in 2020.
2. Weighted-average number of shares of common stock outstanding during 2020 was 50,000 shares.
3. Market price of common stock on December 31, 2020, was $16 per share.
4. Net cash provided by operating activities for 2020 was $70,000.

Required

Using the financial statements and additional information above, compute the following ratios for the Precious Company for 2020. Show all formulas and computations.

1. Current ratio .
2. Return on common stockholders' equity .
3. Price-earnings ratio .
4. Inventory turnover .
5. Accounts receivable turnover .
6. Times interest earned .
7. Profit margin .
8. Days in inventory .
9. Payout ratio .
10. Return on assets .

The end of the assignment