Reference no: EM13577631

Comparative Balance Sheet

December 31,

ASSETS	2009	2008
Cash	$ 35,000	$ 40,000
Short-term investments	15,000	60,000
Accounts receivables	50,000	30,000
Inventory	50,000	70,000
Property, plant & equip (net)	250,000	300,000
Total assets	400,000	500,000
LIAB & Stockholders Equity
Accounts payable	10,000	30,000
Short-term notes payable	40,000	90,000
Bonds payable	88,000	160,000
Common stock	160,000	145,000
Retained earnings	102,000	75,000
Total Liab & SE	400,000	500,000

Hampton Company           

Income Statement         

For the year ended December 31, 2009

Net Sales		360,000
Cost of Goods Sold		198,000
Gross Profit		162,000
Expenses
Interest Expense	12,000
Selling Expense	40,000
Admin. Expense	59,000
Total Expense		111,000
Income before income taxes		51,000
Income tax expense		15,000
Net Income		36,000

Additional Information:

a. Cash dividends of $9,000 were declared and paid in 2009.

b. Weighted Average number of shares of common stock outstanding during 2008 was 30,000 shares.

c. Market value of common stock on December 31,2009 was $21 per share.
Instructions
Using the financial statements and additional information, compute the following ratios for Hampton Company for 2009. Show all computations.

1. Current ratio: _________________

2. Return on Common stockholders equity__________________

3. Price-earnings ratio _______________

4. Acid-test ratio _______________

5. Receivables turnover ______________

6. TImes interest earned ______________

7. Profit margin __________----

8. Days in inventory ______________

9. Payout ratio ______________

10. Return on assets ___________