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13.

Recent financial statements for Madison Company follow:

Madison Company Balance Sheet June 30
Assets
Current assets:
Cash				$	21,000
Accounts receivable, net					160,000
Merchandise inventory					310,000
Prepaid expenses					10,000
Total current assets					501,000
Plant and equipment, net					880,000
Total assets				$	1,381,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities				$	260,000
Bonds payable, 11%					380,000
Total liabilities					640,000
Stockholders equity:
Common stock, $10 par value	$	180,000
Retained earnings		561,000
Total stockholders equity					741,000
Total liabilities and stockholders' equity				$	1,381,000

Madison Company Income Statement For the Year Ended June 30
Sales	$	2,100,000
Cost of goods sold		1,419,000
Gross margin		681,000
Selling and administrative expenses		630,000
Net operating income		51,000
Interest expense		41,800
Net income before taxes		9,200
Income taxes		2,760
Net income	$	6,440

Account balances at the beginning of the companys fiscal year were: accounts receivable, $140,000; and inventory, $350,000. All sales were on account.

Required:

Compute financial ratios as follows:

1.	Gross margin percentage. (Round your answer to the nearest whole percent.)

Gross margin percentage

%

2.	Current ratio. (Round your answer to 2 decimal places.)

Current ratio

3.	Acid-test ratio. (Round your answer to 2 decimal places.)

Acid-test ratio

4.	Average collection period. (Use 365 days in a year. Round your answer to 1 decimal place.)

Average collection period

days

5.	Average sale period. (Use 365 days in a year. Do not round intermediate calculations. Round your final answer to 1 decimal place.)

Average sale period

days

6.	Debt-to-equity ratio. (Round your answer to 2 decimal places.)

Debt-to-equity ratio

7.	Times interest earned. (Round your answer to 1 decimal place.)

Times interest earned

8.	Book value per share. (Round your answer to the nearest dollar amount.)

Book value per share

$

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