The Stair Company sells computer parts through a retail store that it operates. The firm's comparative income statement and balance sheet for the years 2019 and 2018 are shown below. THE STAIR COMPANY Comparative Income Statement For Years Ended December 31, 2019 and 2018 Amounts 2019 2018 Revenue Sales 910,800 757,500 Less Sales Returns and Allowances 10,800 7,500 Net Sales 900,000 750,000 Cost of Goods Sold Merchandise Inventory, January 1 81,000 76,500 Net Purchases 365,850 309,000 Total Merchandise Available for Sale 446,850 385,500 Less Merchandise Inventory, December 31 88,200 81,000 Cost of Goods Sold 358, 650 304,500 Gross Profit on Sales 541,350 445,500 Operating Expenses Selling Expenses Sales Salaries Expenses 88,200 84,000 Payroll Tax Expense-Selling 9,000 8,250 Other Selling Expenses 24,300 18,000 Total Selling Expenses 121,500 110,250 General and Administrative Expenses Officers' Salaries Expense Payroll Tax Expense-Administrative Depreciation Expense Other General and Administrative Expenses Total General and Administrative Expenses Total Operating Expenses Net Income before Income Taxes Income Tax Expense Net Income after Income Taxes 153,000 13,500 8,100 13,500 188, 100 309,600 231,750 69,525 162,225 121,500 10,500 8,100 10,500 150,600 260,850 184,650 55,395 129,255 THE STAIR COMPANY Comparative Balance Sheet December 31, 2019 and 2018 Amounts 2019 2018 Assets Current Assets Cash Accounts Receivable Merchandise Inventory Prepaid Expenses Supplies Total Current Assets 122,100 108,200 88,200 14,600 2,000 335,100 57,000 99,000 81,000 9,000 900 246,900 87,000 94,400 (32,400) 62,000 87,000 94,400 (24,300) 70, 100 157,100 404,000 484,100 Property, plant, and Equipment Land Building and Equipment Less Accumulated Depreciation Net Book Value-Building and Equipment Total Property, plant, and Equipment Total Assets Liabilities and Stockholders' Equity Current Liabilities Accounts Payable Sales Tax Payable Payroll Taxes Payable Income Taxes Payable Total Current Liabilities Long-Term Liabilities Mortgage Payable Total Long-Term Liabilities Total Liabilities Stockholders' Equity Common Stock ($1 par, 10,000 shares authorized; 10,000 shares issued and outstanding) Paid-in Capital-Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity 40,200 2,200 2,300 2,200 46,900 69,000 4,000 2,100 6,000 81,100 52,200 52,200 99,100 57,000 57,000 138,100 10,000 10,000 365,000 10,000 10,000 245,900 265,900 404,000 484,100 Assume all sales are credit sales. Part 1 1. Calculate the current ratio for 2018 and 2019. 2. Calculate the acid-test ratio for 2018 and 2019. 3. Calculate the inventory turnover for 2018 and 2019. 4. Calculate the return on sales for 2018 and 2019. 5. Calculate the earnings per share of common stock for 2018 and 2019. 6. Calculate the book value per share of common stock for 2018 and 2019 7. Calculate the return on total assets for 2018 and 2019. 8. Calculate the ratio of stockholders' equity to total equities for 2018 and 2019. 9. Calculate the rate of return on stockholders' equity for 2018 and 2019. 10. Calculate the asset turnover for 2018 and 2019