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Use the following information to PREPARE A RATIO ANALYSIS FOR Carlton Co. The following information pertains to Carlton Company. Assume that all balance sheet amounts

Use the following information to PREPARE A RATIO ANALYSIS FOR Carlton Co.

The following information pertains to Carlton Company. Assume that all balance sheet amounts represent both average and ending balance figures. Assume that all sales were on credit.

Assets

Cash and short-term investments

$ 40,000

Accounts receivable (net)

25,000

Inventory

20,000

Property, plant and equipment

210,000

Total assets

$295,000

Liabilities and Stockholders Equity

Current liabilities

60,000

Long-term liabilities

85,000

Stockholders equity-common

150,000

Total liabilities and stockholders equity

$295,000

Income Statement

Net sales

$ 85,000

Cost of goods sold

45,000

Gross margin

40,000

Operating expenses

15,000

Interest expense

5,000

Net income

$ 20,000

EPS $3.33

Number of shares of common stock

6,000

Market price of common stock

$20

Total dividends paid

$5,400

Cash provided by operations

$30,000

Dividend per share $.90

Required:

Prepare a ratio analyses using the formulas presented on page 627. If a ratio not applied to Carlton Co., write N/A.

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