Question

Ratios Compared with Industry Averages
Because you own the common stock of Phantom Corporation, a paper manufacturer, you decide to analyze the firm's performance for the most recent year. The following data are taken from the firm's latest annual report:

	Dec. 31, 2013	Dec. 31, 2012
Quick assets	$610,000	$562,000
Inventory and prepaid expenses	382,000	322,000
Other assets	4,788,000	4,176,000
Total Assets	$5,760,000	$5,040,000
Current liabilities	$634,000	$550,000
10% Bonds payable	1,450,000	1,450,000
8% Preferred stock, $100 par value	480,000	480,000
Common stock, $10 par value	2,700,000	2,160,000
Retained earnings	516,000	420,000
Total Liabilities and Stockholders' Equity	$5,760,000	$5,040,000

For 2013, net sales amount to $12,280,000, net income is $583,600, and preferred stock dividends paid are $39,400.

Required
Calculate the following ratios for 2013.

Round answers to two decimal places.

Return on common stockholders' equity :

Quick ratio :

Current ratio

Debt-to-equity ratio

Answer 1