The Korda sisters have provided the following information:

Korda Inc

Comparative Balance Sheet

December 31, 2021

Assets 2021 2020

Cash................................................................................................... $ 20,000 $ 40,000

Short-term investments.................................................................... 20,000 60,000

Accounts receivable (net).................................................................. 40,000 30,000

Inventory........................................................................................... 60,000 70,000

Property, plant and equipment (net)................................................ 260,000 300,000

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

Liabilities and stockholders' equity

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

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

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

Common stock................................................................................... 150,000 150,000

Retained earnings.............................................................................. 110,000 70,000

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

Korda Inc.

Income Statement

For the Year Ended December 31, 2021

Net sales............................................................................................ $400,000

Cost of goods sold............................................................................. 250,000

Gross profit........................................................................................ 150,000

Expenses

Operating expenses..................................................................... $42,000

Interest expense.......................................................................... 18,000

Total expenses....................................................................... 60,000

Income before income taxes............................................................. 90,000

Income tax expense........................................................................... 27,000

Net income........................................................................................ $ 63,000

Additional information:

a. Cash dividends of $23,000 were declared and paid in 2021.

b. Weighted-average number of shares of common stock outstanding during 2021 was 30,000 shares.

c. Market value of common stock on December 31, 2021, was $21 per share.

Instructions

Using the financial statements and additional information, compute the following ratios for Hainz Company for 2020. Show all calculations.

	Ratio	Value	Calculation
1	Current ratio
2	Acid-test ratio
3	Accounts receivable turnover
4	Days in receivables
5	Inventory turnover
6	Days in inventory
7	Return on common stockholders equity
8	Profit margin
9	Return on assets
10	Payout ratio
11	Earnings per share
12	Price-earnings ratio
13	Times interest earned
14	Solvency ratio

Conclusion: Provide a discussion on your findings related to the companys liquidity, profitability, and solvency position. Justify your conclusions.

Discussion of Findings

Liquidity:

Profitability:

Solvency: