Mugs Company Comparative Balance Sheet December 31, 2007 2007 2006 Assets Cash $ 25,000 $ 40,000 Marketable securities 20,000 60,000 Accounts Receivable (net) 40,000 30,000 Inventory 150,000 170,000 Property,plant and equipment (net) 170,000 200,000 Total Assets $405,000 $500,000 Liabilities and stockholders' equity Accounts payable $ 25,000 $ 30,000 Bond Interest payable 40,000 90,000 Bonds payable 75,000 160,000 Common Stock 175,000 145,000 Retained earnings 90,000 75,000 Total liabilities and stockholders' equity $405,000 $500,000 Mugs Company Income Statement For the Year Ended 12/31/07 Net Sales $360,000 Cost of goods sold 184,000 Gross profit 176,000 Expenses Interest Expense $21,000 Selling Expense 30,000 Administrative Expenses 20,000 Total expenses 71,000 Income before income taxes 105,000 Income tax expense 30,000 Net Income $75,000 Additional Information: Cash dividends of $50,000 were declared and paid in 2007. Weighted average number of shares of common stock outstanding during 2007 were 62,000 shares. Market value of common stock on December 31,2007 was $15 per share. Net cash provided by operating activities for 2007 was $65,000. Using the financial statements and additional information, compute the following ratios for the Mugs Company for 2007. You need to label your ratios and show your calculations for maximum credit.
1. Current ratio Return on common stockholders' equity Price-earnings ratio Inventory turnover ratio Average days in inventory Receivable turnover Average days to collect receivables Profit margin ratio Payout ratio Return on assets