DILLON COMPANY Balance Sheets December 31 Assets 2009 2008 Current assets Cash $21,000 $18,000 Short-term investments 18,000 15,000 Accounts receivable (net) 86,000 74,000 Inventory 90,000 70,000 Total current assets 215,000 177,000 Plant assets (net) 423,000 383,000 Total assets $638,000 $560,000 Liabilities and Stockholders’ Equity Current liabilities Accounts payable $122,000 $110,000 Income taxes payable 23,000 20,000 Total current liabilities 145,000 130,000 Long-term liabilities Bonds payable 120,000 80,000 Total liabilities 265,000 210,000 Stockholders’ equity Common stock ($5 par) 150,000 150,000 Retained earnings 223,000 200,000 Total stockholders’ equity 373,000 350,000 Total liabilities and stockholders’ equity $638,000 $560,000 Additional data: The common stock recently sold at $19.50 per share. The year-end balance in the allowance for doubtful accounts was $3,000 for 2009 and $2,400 for 2008. Instructions Compute the following ratios for 2009. (a) Current. (b) Acid-test. (c) Receivables turnover. (d) Inventory turnover. (e) Profit margin. (f) Asset turnover. (g) Return on assets.