Question

Can you please show your work. Thank you

Using the following information find the ratios listed:

Hamilton Company
Comparative Balance Sheets
December 31, 2018 and December 31, 2019
Assets	2018	2019	Difference
Cash	15,000	47,000	32,000
Accounts Receivable	55,000	47,000	(8,000)
Inventory	110,000	144,000	34,000
Prepaid Expenses	5,000	1,000	(4,000)
Long term investments	127,000	115,000	(12,000)
Land	55,000	55,000	-
Building	450,000	660,000	210,000
Accumulated Depr - Building	(68,000)	(103,000)	(35,000)
Total Assets	749,000	966,000	217,000
Liabilities & Stockholder's Equity
Accounts Payable	43,000	50,000	7,000
Income Tax Payable	5,000	3,000	(2,000)
Accrued Liabilities	9,000	12,000	3,000
Bonds Payable	245,000	295,000	50,000
Common Stock $5 par value	200,000	276,000	76,000
Additional paid in capital	115,000	214,000	99,000
Retained Earnings	132,000	116,000	(16,000)
Total Liabilities & S/E	749,000	966,000	217,000

Sales	225,000
Cost of Goods Sold	120,000
Gross Profit	105,000
Operating Expense	70,000
Income before interest	35,000
Interest	12,000
Income before Taxes	23,000
Taxes	7,000
Net Income	16,000

Dividends Paid $13,800

Market price of stock $12

Find the following ratios for 2015:

1.   Current Ratio

2.   Quick Ratio

3.   Accounts Receivable Turnover

4.   Days to Collect

5.   Inventory Turnover

6.   Days on hand

7.   Payable Turnover

8.   Days to pay

9.   Debt to Equity Ratio

10. Number of times interest Earned

11. Profit Margin

12. Assets Turnover

13. Return on Assets

14. Return on Equity

15. Earnings per Share

16. Price/Earnings Ratio

17. Dividend Yield

Answer 1

1	Current ratio	= Current Assets/ Current Liabilities
	For 2018	=185000/57000=	3.25
	For 2019	=239000/65000=	3.68
	Current Asssets= Cash+Accounts Receivables+Inventory+Prepaid Expenses
	For 2018	=15000+55000+110000+5000=	185000
	For 2019	=47000+47000+144000+1000=	239000
	Current Liabilities=Accounts Payable+Income Tax Payable+Accrued liabilities
	For 2018	=43000+5000+9000=		57000
	For 2019	=50000+3000+12000=		65000

2	Quick Ratio = (Current Assets- Inventory- Prepaid Expenses)/ Current Liabilities
	For 2018	=70000/57000=	1.23
	For 2019	=94000/65000=	1.45
	Quick Assets= Cash+Accounts Receivables+Inventory+Prepaid Expenses
	For 2018	=15000+55000=	70000
	For 2019	=47000+47000=	94000
	Current Liabilities=Accounts Payable+Income Tax Payable+Accrued liabilities
	For 2018	=43000+5000+9000=		57000
	For 2019	=50000+3000+12000=		65000

3	Accounts ReceivableTurnover
	=Credit Sales/ (Average Accounts Receivables)
	=225000/51000	4.41	times
	Average Accounts Trade Receivables
	= (Opening Trade Rec.+ Closing Trade Rec.)/2
	=(55000+47000)/2=	51000
4	Days To collect
	=365/Accounts Receivable turnover Ratio	82.73	days

5	Inventory Turnover Ratio
	= Cost of goods Sold / Average Inventory
	=120000/127000	0.94
	Average Inventory = (Opening Inv.+ Closing Inv.)/2
	=(110000+144000)/2	127000
6	Days on hand
	=365/ Inventory turnover Ratio
	=365/0.94=	388.2979	days
7	Payables turnover
	=Purchases/Average Trade Payables
	=154000/46500=	3.31
	Average Accounts Trade Payables
	= (Opening Trade Pay.+ Closing Trade Pay.)/2
	=(43000+50000)/2=	46500
	Purchases= Closing Stock+Cost of Goods Sold-Opening Stock
	=144000+120000-110000=	154000
8	Days to pay
	=365/ Payables Turnover ratio
	110.27	days

9	Debt to Equity Ratio = Debt / Equity
		=295000/606000
		0.49
	Debt= Bonds payable=295000
	Equity=Common Stock+Additional capital+Retained Earnings
	=276000+214000+116000	606000
10	Number of times interest earned
	=Profit Before Interest/ Interest
	=35000/12000
	2.92
11	Profit Margin
	Gross Profit Ratio	=GP/ Sales	=105000/225000=	46.67%
	Net Profit Ratio	=NP/ Sales	=16000/225000=	7.11%
12	Assets turnover ratio
	=Sales/ Fixed Assets	=225000/612000=	0.37
	Fixed Assets= Land + Building- Dep
		=55000+660000-103000=	612000

13	Return on Assets
	= (Net Income/ total Assets )*100
	=(16000/966000)*100
	1.66%
14	Retun on Equity
	= (Net Income/ Shareholders Equity)*100
	=(16000/606000)*100=
	2.64%
	Equity=Common Stock+Additional capital+Retained Earnings
	=276000+214000+116000	606000
15	Earnings Per Share
	no. of Shares		=276000/5=	55200
	=EPS= Net Income/ no of Shares
	=16000/55200
	0.29	per share
16	Price/ Earning Ratio
	= Market Price per share/ Earning per share
	=12/0.29	41.4
17	Dividend Yield
	=Dividend per share/ Price per share
	=0.25/5	5%
	Dividend per share	=13800/55200	0.25
	Price per share = 5