The following information is taken from the books of Flintrock Corporation.

Flintrock Corporation

Comparative Balance Sheet

December 31

Assets 2008 2007

$ $

Cash 120,000 110,000

Accounts receivable (net) 135,000 95,000

Inventory 270,000 240,000

Property, plant and equipment (net) 750,000 800,000

Total assets 1,275,000 1,245,000

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Liabilities and Stockholders' Equity

Accounts Payable 152,000 208,000

Accrued Liabilities 12,000 16,000

Bonds Payable, 10 percent 160,000 160,000

Common Stock, $10 par 500,000 500,000

Retained Earnings 451,000 361,000

Total liabilities and stockholders' equity 1,275,000 1,245,000

Flintrock Corporation

Income Statement

For the Year Ended December 31, 2008

Net Sales 1,200,000

Cost of Goods Sold 700,000

Gross Margin 500,000

Operating Expenses:

Depreciation 70,000

Interest 10,000

Others 260,000 340,000

Income Before Income Taxes 160,000

Income Taxes 40,000

Net Income 120,000

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Note: Dividends of $0.60 per share were declared and paid during 2008. The market price of the stock on December 31, 2008 was $18.00 per share.

Compute the following ratios for the year 2008. Round your answers to two decimal places. Show your workings.

a. Current ratio b. Receivable Turnover

c. Inventory Turnover d. Asset Turnover

e. Average days' Inventory f. Interest Coverage Ratio

on hand

g. Return on Equity h. Price/earnings ratio