The financial statements of the Precious Company appear below:

PRECIOUS COMPANY Comparative Balance Sheet December 31, _________________________________________________________________________

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: 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.

Required

Using the financial statements and additional information above, compute the following ratios for the Precious Company for 2020. Show all formulas and computations. 1Current ratio . 2Return on common stockholders' equity . 3Price-earnings ratio . 4Inventory turnover . 5Accounts receivable turnover . 6Times interest earned . 7Profit margin . 8Days in inventory . 9Payout ratio - 10Return on assets -

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