Textbook Problem

Ratio Analysis Byers Company presents the following condensed income Statement for 2019 and condensed December 31, 2019, balance sheet:

Additional information:

1. 1. The company’s common stock was outstanding the entire year.
2. 2. Dividends of $1.50 per share on the common stock were declared in 2019.
3. 3. On December 31, 2019, common stock is selling for $20 per share.
4. 4. On January 1, 2019, the accounts receivable (net) balance was $24,000, total assets amounted to $380,000, and total shareholders’ equity was $241,000.
5. 5. Of the company’s net sales, 78% are on credit.
6. 6. The company operates on a 365-day business year.

Required:

Compute the following ratios for Byers (round all computations to two decimals): (1) earnings per share, (2) gross profit margin, (3) operating profit margin, (4) net profit margin, (5) total asset turnover, (6) return on assets, (7) return on common equity, (8) receivables turnover (in days), and (9) interest coverage.