The comparative statements of Dillon Company are presented below.

Analysis
DILLON COMPANY
Balance Sheets
December 31
Assets 2009 2008
Current assets
Cash $ 21,000 $ 18,000
Short-term investments 18,000 15,000
Accounts receivable (net) 86,000 74,000
Inventory 90,000 70,000
Total current assets 215,000 177,000
Plant assets (net) 423,000 383,000
Total assets $638,000 $560,000
Compute numerous ratios.

Additional data:
The common stock recently sold at $19.50 per share.
The year-end balance in the allowance for doubtful accounts was $3,000 for 2009 and $2,400 for
2008.
Instructions
Compute the following ratios for 2009.
(a) Current. (h) Return on common stockholders’ equity.
(b) Acid-test. (i) Earnings per share.
(c) Receivables turnover. (j) Price-earnings.
(d) Inventory turnover. (k) Payout.
(e) Profit margin. (l) Debt to total assets.
(f) Asset turnover. (m) Times interest earned.
(g) Return on assets.

To compute the ratios for 2009, you will need the following information from the given comparative statements of Dillon Company:

Current Assets:
- Cash: $21,000
- Short-term investments: $18,000
- Accounts receivable (net): $86,000
- Inventory: $90,000

Total Current Assets: $215,000

Plant assets (net): $423,000

Total assets: $638,000

Additional data:
- Common stock price: $19.50 per share
- Allowance for doubtful accounts at year-end 2009: $3,000
- Allowance for doubtful accounts at year-end 2008: $2,400

Now let's compute the ratios one by one:

(a) Current Ratio = Current Assets / Current Liabilities
To calculate this ratio, you will also need the information on current liabilities. Unfortunately, it is not given in the comparative statements. Therefore, we cannot compute the current ratio without knowing the current liabilities.

(b) Acid-test Ratio = (Cash + Short-term investments + Accounts receivable) / Current Liabilities
Again, we need the information on current liabilities to compute this ratio.

(c) Receivables Turnover = Net Credit Sales / Average Accounts Receivable
The information on net credit sales is not provided in the given statements, so we cannot calculate this ratio.

(d) Inventory Turnover = Cost of Goods Sold / Average Inventory
The cost of goods sold is not given in the statements, so this ratio cannot be calculated.

(e) Profit Margin = Net Income / Net Sales
The net income is not provided in the statements, so we cannot compute this ratio.

(f) Asset Turnover = Net Sales / Total Assets
Once again, we need the net sales information, which is not given.

(g) Return on Assets = Net Income / Average Total Assets
The net income is not given, so we cannot calculate this ratio.

(h) Return on Common Stockholders' Equity = Net Income / Average Common Stockholders' Equity
Since the net income is not provided, we cannot compute this ratio.

(i) Earnings per Share (EPS) = Net Income / Weighted Average Number of Common Shares Outstanding
The net income is not given, so this ratio cannot be calculated.

(j) Price-Earnings Ratio = Market Price per Share / Earnings per Share
Without the net income and market price per share, we cannot compute this ratio.

(k) Payout Ratio = Dividends per Share / Earnings per Share
The dividend amount and net income are missing, so this ratio cannot be calculated.

(l) Debt to Total Assets = Total Debt / Total Assets
The information on total debt is not given, so this ratio cannot be computed.

(m) Times Interest Earned = Operating Income / Interest Expense
The operating income and interest expense are not provided, so we cannot calculate this ratio.

Unfortunately, due to missing information in the given statements, we can only compute the ratios that are provided with the necessary data.