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The financial statements of Hainz Company appear below:

HAINZ COMPANY

Comparative Balance Sheet

December 31

Assets 2015 2014

Cash............................................................. $ 20,000 $ 40,000

Short-term investments............................ 20,000 60,000

Accounts receivable (net).......................... 40,000 30,000

Inventory..................................................... 60,000 70,000

Property, plant and equipment (net)....... 260,000 300,000

Total assets .......................................... $400,000 $500,000

Liabilities and stockholders' equity

Accounts payable...................................... $ 20,000 $ 30,000

Short-term notes payable........................ 40,000 90,000

Bonds payable........................................... 80,000 160,000

Common stock.......................................... 150,000 150,000

Retained earnings..................................... 110,000 70,000

Total liabilities and stockholders' equity. $400,000 $500,000

HAINZ COMPANY

Income Statement

For the Year Ended December 31, 2015

Net sales................................................................................ $400,000

Cost of goods sold................................................................. 250,000

Gross profit............................................................................ 150,000

Expenses

Operating expenses.................................... $42,000

Interest expense......................................... 18,000

Total expenses................................................ 60,000

Income before income taxes.................................... 90,000

Income tax expense................................................... 27,000

Net income.................................................................. $ 63,000

Additional information:

a. Cash dividends of $23,000 were declared and paid in 2015.

b. Weighted-average number of shares of common stock outstanding during 2015 was 30,000 shares.

c. Market value of common stock on December 31, 2015, was $21 per share.

Instructions

Using the financial statements and additional information, compute the ratios listed on the following page, for Hainz Company for 2015.

a) Current ratio

b) Return on common stockholders' equity

c) Earnings per share

d) Price-earning ratio

e) Acid-test ratio

f) Accounts receivable turnover

g) Times interest earned

h) Profit margin

i) Payout ration

j) Return on assets

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