Financial Ratios. The 20X9 financial statements for Johanson Co. are reproduced below.
Johanson Co. Statement of Financial Position (in Thousands of Dollars) December 31, 20X8 and 20X9
20X8 20X9
ASSETS
Current assets
Cash and temporary investments $ 380 $ 400
Accounts receivable (net) 1,500 1,700
Accounts receivable (net) 1,500 1,700
Inventories 2,120 2,200
Total current assets $4,000 $4,300
Long-term assets
Land
Building and equipment (net) 4,000 4,700
Total long-term assets $4,500 $5,200
Total assets $8,500 $9,500
LIABILITIES AND STOCKHOLDERS’ EQUITY
Liabilities
Current liabilities
Accounts payable $ 700 $1,400
Current portion of long-term
Debt
Total current liabilities $1,200 $2,400
Long-term debt 4,000 3,000
Total liabilities $5,200 $5,400
Long-term debt 4,000 3,000
Total liabilities $5,200 $5,400
Stockholders’ equity
Common stock $3,000 $3,000
Retained earnings 300 1,100
Total stockholders’ equity $3,300 $4,100
Total liabilities and stockholders’
Equity $8,500 $9,500
Johanson Company Statement of Income and Retained Earnings (in Thousands of Dollars) For the Year Ended December 31, 20X1
Net sales $28,800
Less: Cost of goods sold $15,120
Selling expenses 7,180
Administrative expenses 4,100
Interest 400
Income taxes 800 27,600
Net income $ 1,200
Retained earnings January 1 300
Subtotal $ 1,500
Cash dividends declared and paid 400
Retained earnings December 31 $ 1,100
For 20X9, find (a) the acid-test ratio; (b) the average number of days sales were outstanding; (c) the times interest earned ratio; (d ) the asset turnover; (e) the inventory turnover; ( f ) the operating income margin; and (g) the dividend payout ratio. (CMA, adapted.)