The market value of Farmington Corp.'s common shares was quoted at $54 per share at December 31, 2018, and 2017. Planetarium 's balance sheet at December 31, 2018, and 2017, and statement of income and retained earnings for the years then ended are presented below:

Farmington Corp.

Balance Sheet

December 31

2018 2017

Assets:

Current assets:

Cash $ 9,000,000 $ 5,200,000

Short-term investments 17,200,000 15,400,000

Accounts receivable (net) 109,000,000 111,000,000

Inventories, lower of cost or market 122,000,000 140,000,000

Prepaid expenses 4,000,000 2,800,000

Total current assets $261,200,000 $274,400,000

Property, plant, and equipment (net) 350,000,000 315,000,000

Investments, at equity 2,800,000 3,500,000

Long-term receivables 15,000,000 20,000,000

Copyrights and patents (net) 6,000,000 7,000,000

Other assets 8,000,000 9,100,000

Total assets $643,000,000 $629,000,000

Liabilities and Stockholders' Equity:

Current liabilities:

Notes payable $ 7,000,000 $ 17,000,000

Accounts payable 55,000,000 52,000,000

Accrued expenses 27,500,000 30,000,000

Income taxes payable 1,500,000 2,000,000

Current portion of long-term debt 10,000,000 9,500,000

Total current liabilities 101,000,000 110,500,000

Long-term debt 180,000,000 190,000,000

Deferred income taxes 69,000,000 65,000,000

Other liabilities 15,000,000 9,500,000

Total liabilities 365,000,000 375,000,000

Stockholders' equity:

Common stock, par value $1; authorized 20,000,000

shares; issued and outstanding 12,000,000 shares 12,000,000 12,000,000

10% cumulative preferred shares, par value $100;

$100 liquidating value; authorized 100,000 shares;

issued and outstanding 60,000 shares 6,000,000 6,000,000

Additional paid-in capital 119,000,000 119,000,000

Retained earnings 141,000,000 117,000,000

Total stockholders' equity 278,000,000 254,000,000

Total liabilities and stockholders' equity $643,000,000 $629,000,000

Farmington Corp.

Statement of Income and Retained Earnings

Year ended December 31

2018 2017

Net sales $540,000,000 $500,000,000

Cost and expenses:

Cost of goods sold 390,900,000 400,000,000

Selling, general, and administrative expenses 70,000,000 65,000,000

Other, net 9,100,000 6,000,000

Total costs and expenses 470,000,000 471,000,000

Income before income taxes 70,000,000 29,000,000

Income taxes 21,000,000 11,600,000

Net income 49,000,000 17,400,000

Retained earnings at beginning of period 117,000,000 113,100,000

Dividends on common stock (24,400,000) (12,900,000)

Dividends on preferred stock (600,000) (600,000)

Retained earnings at end of period $141,000,000 $117,000,000

Instructions

Based on the above information, compute the following (for the year 2018 only): (Show supporting computations in good form.)

(a) Current ratio.

(b) Acid-test (quick) ratio.

(c) Accounts receivable turnover.

(d) Inventory turnover.

(e) Book value per share of common stock.

(f) Earnings per share.

(g) Price-earnings ratio.

(h) Payout ratio on common stock.