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Amounts from the comparative income statement and balance sheet of Johnson Stores, Inc., for the last two years are as follows:
| Johnson Stores, Inc. |
| Comparative Income Statement |
| For Years Ended December 31, 20-2 and 20-1 |
| 1 | | 20-2 | 20-1 |
| 2 | Net sales (all on account) | $467,865.00 | $305,145.00 |
| 3 | Cost of goods sold | 256,955.00 | 149,005.00 |
| 4 | Gross profit | $210,910.00 | $156,140.00 |
| 5 | Administrative expenses | $43,876.00 | $30,617.00 |
| 6 | Selling expenses | 44,994.00 | 31,293.00 |
| 7 | Total operating expenses | $88,870.00 | $61,910.00 |
| 8 | Operating income | $122,040.00 | $94,230.00 |
| 9 | Interest expense | 916.00 | 903.00 |
| 10 | Income before income taxes | $121,124.00 | $93,327.00 |
| 11 | Income tax expense | 30,280.00 | 19,980.00 |
| 12 | Net income | $90,844.00 | $73,347.00 |
| Johnson Stores, Inc. |
| Comparative Balance Sheet |
| December 31, 20-2 and 20-1 |
| 1 | | 20-2 | 20-1 |
| 2 | Assets | | |
| 3 | Current assets: | | |
| 4 | Cash | $30,275.00 | $15,604.00 |
| 5 | Receivables (net) | 42,441.00 | 33,565.00 |
| 6 | Merchandise inventory | 49,460.00 | 34,636.00 |
| 7 | Supplies and prepayments | 7,119.00 | 6,403.00 |
| 8 | Total current assets | $129,295.00 | $90,208.00 |
| 9 | Property, plant, and equipment: | | |
| 10 | Office equipment (net) | $9,025.00 | $6,062.00 |
| 11 | Factory equipment (net) | 72,090.00 | 52,930.00 |
| 12 | Total property, plant, and equipment | $81,115.00 | $58,992.00 |
| 13 | Total assets | $210,410.00 | $149,200.00 |
| 14 | Liabilities | | |
| 15 | Current liabilities | | |
| 16 | Notes payable | $4,000.00 | $8,000.00 |
| 17 | Accounts payable | 30,233.00 | 14,821.00 |
| 18 | Accrued and withheld payroll taxes | 6,250.00 | 7,600.00 |
| 19 | Total current liabilities | $40,483.00 | $30,421.00 |
| 20 | Stockholders Equity | | |
| 21 | Common stock ($10 par) | $75,000.00 | $63,000.00 |
| 22 | Retained earnings | 94,927.00 | 55,779.00 |
| 23 | Total stockholders equity | $169,927.00 | $118,779.00 |
| 24 | Total liabilities and stockholders equity | $210,410.00 | $149,200.00 |
| | Required: |
| | Calculate the following ratios and amounts for 20-1 and 20-2 (round all calculations to two decimal places). |
| (a) | Return on assets (Total assets on January 1, 20-1, were $111,325.) |
| (b) | Return on common stockholders equity (Total common stockholders equity on January 1, 20-1, was $82,008.) |
| (c) | Earnings per share of common stock (The average numbers of shares outstanding were 6,300 shares in 20-1 and 6,900 in 20-2.) |
| (d) | Book value per share of common stock |
| (e) | Quick ratio |
| (f) | Current ratio |
| (g) | Working capital |
| (h) | Receivables turnover (Net receivables on January 1, 20-1, were $28,995.) |
| (i) | Merchandise inventory turnover (Merchandise inventory on January 1, 20-1, was $32,425.) |
| (j) | Debt-to-equity ratio |
| (k) | Asset turnover (Assets on January 1, 20-1, were $111,325.) |
| (l) | Times interest earned ratio |
| (m) | Profit margin ratio |
| (n) | Assets-to-equity ratio |
| (o) | Price-earnings ratio (The market price of the common stock was $120.00 and $110.00 on December 31, 20-2 and 20-1, respectively.) |
Calculate the following ratios and amounts for 20-1 and 20-2 (round all calculations to two decimal places).
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