The Financial Statements of Hainz Company Appear Below Additional Information:
A

question 48

Essay

The financial statements of Hainz Company appear below: $\begin{array}{lcc} \text { Liabilities and stockholders' equity}\\ \text { Accounts payable } & \$ 20,000&\$30,000 \\ \text { Short-term notes payable} & 40,000 &90,000\\ \text { Bonds payable } & 80,000 &160,000\\\text { Common stock } & 150,000&150,000 \\\text { Retained earnings} & 110,000&70,000 \\\text { Total liabilities and stockholders' equity }&\$400,000&\$500,000\end{array}$ $\begin{array}{llr} \text { Net sales } &&\$400,000\\ \text {Cost of goods sold } &&250,000\\ \text { Gross profit} &&150,000\\ \text { Expenses} &\\ \text { Operating expenses } &\$42,000\\ \text { Interest expense } &18,000\\ \text { Total expenses } &&60,000\\ \text {Income before income taxes } &&90,000\\ \text { Income tax expense} &&27,000\\ \text { Net income.} &&\$63,000\\\end{array}$

Additional information:
a. Cash dividends of $\$ 23,000$ were declared and paid in 2017 .
b. Weighted-average number of shares of common stock outstanding during 2017 was 30,000 shares.
c. Market value of common stock on December 31, 2017, was $\$ 21$ per share. Instructions
Using the financial statements and additional information compute the following ratios for Hainz Company for 2017. Show all computations.
Computations
1. Current ratio _________.
2. Return on common stockholders' equity _________.
3. Price-earnings ratio _________.
4. Acid-test ratio _________.
5. Accounts receivable turnover _________.
6. Times interest earned _________.
7. Profit margin _________.
8. Days in inventory _________.
9. Payout ratio _________.
10. Return on assets _________.

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Definitions:

Generativity

The concern for establishing and guiding the next generation, commonly expressed during middle adulthood.

Age Discrimination

Unfair treatment or prejudice against individuals based on their age, particularly prevalent in the workplace but can occur in other contexts.

Seniority

The concept that privileges, priorities, or status are granted to individuals on the basis of their tenure or length of service in a particular context or organization.

Dismissing Diversity

Overlooking or undervaluing the importance of a diverse range of cultures, ideas, and identities.