| P18-6A The comparative statements of Dillon Company are presented below. | DILLON COMPANY | | Income Statement | | For the Year Ended December 31 | | | 2009 | | 2008 | | Net sales (all on account) | $600,000 | | $520,000 | | Expenses | | | | | Cost of goods sold | 415,000 | | 354,000 | | Selling and administrative | 120,800 | | 114,800 | | Interest expense | 7,800 | | 6,000 | | Income tax expense | 18,000 | | 14,000 | | Total expenses | 561,600 | | 488,800 | | Net income | $ 38,400 | | $ 31,200 | | | | | | | 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 | | | | | | | Liabilities and Stockholders' Equity | | | | | Current liabilities | | | | | Accounts payable | $122,000 | | $110,000 | | Income taxes payable | 23,000 | | 20,000 | | Total current liabilities | 145,000 | | 130,000 | | Long-term liabilities | | | | | Bonds payable | 120,000 | | 80,000 | | Total liabilities | 265,000 | | 210,000 | | Stockholders' equity | | | | | Common stock ($5 par) | 150,000 | | 150,000 | | Retained earnings | 223,000 | | 200,000 | | Total stockholders' equity | 373,000 | | 350,000 | | Total liabilities and stockholders' equity | $638,000 | | $560,000 |
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. (Round acid-test ratio and earnings per share to 2 decimal places and all other answers to 1 decimal place.) | |