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Recent financial statements for Madison Company follow:

Madison Company Balance Sheet June 30
Assets
Current assets:
Cash				$	20,000
Accounts receivable, net					250,000
Merchandise inventory					360,000
Prepaid expenses					10,000
Total current assets					640,000
Plant and equipment, net					890,000
Total assets				$	1,530,000
Liabilities and Stockholders' Equity
Liabilities:
Current liabilities				$	210,000
Bonds payable, 10%					360,000
Total liabilities					570,000
Stockholders equity:
Common stock, $10 par value	$	150,000
Retained earnings		810,000
Total stockholders equity					960,000
Total liabilities and stockholders' equity				$	1,530,000

Madison Company Income Statement For the Year Ended June 30
Sales	$	2,800,000
Cost of goods sold		1,373,500
Gross margin		1,426,500
Selling and administrative expenses		600,000
Net operating income		826,500
Interest expense		36,000
Net income before taxes		790,500
Income taxes		237,150
Net income	$	553,350

Account balances at the beginning of the companys fiscal year were: accounts receivable, $150,000; and inventory, $310,000. All sales were on account.

Required:

Compute financial ratios as follows:

1.	Gross margin percentage. (Round your answer to the nearest whole percent. Omit the "%" sign in your response.)

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. Round your intermediate and final answer to 1 decimal places.)

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. Omit the "$" sign in your response.)

Book value

$ per share

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