GANTNER CORPORATION

Question

Comparative Balance Sheet
December 31
2002 2001
Assets
Cash $ 4,000 $ 6,000
Accounts receivable (net) 12,000 10,000
Inventory 14,000 20,000
Land 28,000 8,000
Machinery 62,000 60,000
Accumulated amortization (20,000) (14,000)
Total assets $100,000 $90,000

Liabilities and Shareholders' Equity
Accounts payable $ 10,000 $26,000
Long-term notes payable 35,000 19,000
Common shares 40,000 40,000
Retained earnings 15,000 5,000
Total liabilities and shareholders' equity $100,000 $90,000
GANTNER CORPORATION
Income Statement
For the year ended December 31, 2002

Sales $390,000
Less: Sales returns and allowances 10,000
Net sales $380,000
Cost of goods sold 300,000
Gross profit 80,000
Selling expenses 26,000
Administrative expenses 20,000
Income before income taxes 34,000
Income tax expense 15,000
Net income $ 19,000

Additional Information: All sales were on account. Common shares were issued at $10 per share. The market price of Gantner's common shares was $32 on December 31, 2001, and $38 on December 31, 2002.

Instructions: Calculate the indicated ratios at December 31, 2002, or for the year ended December 31, 2002, as appropriate. Report answers to two decimal places.

1. Return on assets is .

2. Acid test ratio is .

3. Profit margin is .

4. Debt to total assets is .

5. Asset turnover is .

6. Receivables turnover is .

7. Price-earnings ratio is .

8. Current ratio is