The comparative statements of Villa Tool Company are presented below.VILLA TOOL COMPANYIncome…

The comparative statements of Villa Tool Company are presented below.VILLA TOOL COMPANYIncome…

The comparative statements of Villa Tool Company are presented below.VILLA TOOL COMPANYIncome StatementFor the Year Ended December 3120122011Net sales$1,818,500$1,750,500Cost of goods sold1,011,500996,000Gross profit807,000754,500Selling and administrative expense516,000479,000Income from operations291,000275,500Other expenses and lossesInterest expense18,00014,000Income before income taxes273,000261,500Income tax expense81,00077,000Net income$ 192,000$ 184,500VILLA TOOL COMPANYBalance SheetsDecember 31Assets20122011Current assetsCash$ 60,100$ 64,200Short-term investments69,00050,000Accounts receivable (net)117,800102,800Inventory123,000115,500Total current assets369,900332,500Plant assets (net)600,300520,300Total assets$970,200$852,800Liabilities and Stockholders’ EquityCurrent liabilitiesAccounts payable$160,000$145,400Income taxes payable43,50042,000Total current liabilities203,500187,400Bonds payable200,000200,000Total liabilities403,500387,400Stockholders’ equityCommon stock ($5 par)280,000300,000Retained earnings286,700165,400Total stockholders’ equity566,700465,400Total liabilities and stockholders’ equity$970,200$852,800Compute the following ratios for 2012. (Weighted average common shares in 2012 were 57,000, and all sales were on account.)(Round earnings per share, current ratio and acid-test ratio to 2 decimal places, e.g. 10.50. Round other answers to 1 decimal place, e.g. 10.5.)(a)Earnings per share$(b)Return on common stockholders’ equity%(c)Return on assets%(d)Current:1(e)Acid-test:1(f)Receivables turnovertimes(g)Inventory turnovertimes(h)Times interest earnedtimes(i)Asset turnovertimes(j)Debt to total assets%

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