Consider the following financial statements for Benjamin Company.

During 2019, management obtained additional bond financing to enlarge its production facilities. The company faced higher production costs during the year for such things as fuel, materials, and freight. Because of temporary government price controls, a planned price increase on products was delayed several months.

As a holder of both common and preferred stock, you decide to analyze the financial statements:

Required

a. Calculate the following for each year: current ratio, quick ratio, operating-cash-flow-to-currentliabilities ratio (current liabilities were \(\$ 77,000,000\) at January 1,2018 ), inventory turnover (inventory was \(\$ 87,000,000\) at January 1,2018 ), debt-to-equity ratio, times-interest-earned ratio, return on assets (total assets were \(\$ 490,000,000\) at January 1, 2018), and return on common stockholders' equity (common stockholders' equity was \(\$ 235,000,000\) at January 1,2018 ).

b. Calculate common-size percentages for each year's income statement.

c. Comment on the results of your analysis.

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Assets Cash and cash equivalents. Accounts receivable (net)... Inventory..... Prepaid expenses.... Plant and other assets (net). Total assets.. Liabilities and Stockholders' Equity Current liabilities... 10% bonds payable. 9% Preferred stock, $50 par value. Common stock, $10 par value... Retained earnings.... BENJAMIN COMPANY Balance Sheets (Thousands of Dollars) Dec. 31, 2019 Dec. 31, 2018 $ 21,000 55,000 120,000 $ 12,000 43,000 105,000 Total liabilities and stockholders' equity. 20,000 471,000 $687,000 $ 93,000 225,000 75,000 200,000 94,000 $687,000 14,000 411,000 $585,000 $ 82,000 160,000 75,000 200,000 68,000 $585,000