1 Revenues Expenses Year 2 $ 220,800 Year 1 $ 182,100 10 points eBook Print References Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (43,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 124,400 101,100 19,600 17,600 10,600 9,600 2,100 2,100 19,700 16,600 176,400 147,000 $ 44,400 $ 35,100 101,700 $ 4,900 $ 6,900 1,500 1,500 35,600 38,480 94,600 5,000 4,000 148,700 105,200 20,900 137,400 105,200 $ 274,800 $ 242,688 $ 38,700 $ 34,4800 16,300 16,000 55,000 58,400 65,600 66,600 120,600 117,000 113,100 113,100 41,100 12,500 154,208 125,600 $ 274,800 $ 242,600 Required Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. a. Net margin. (Round your answers to 2 decimal places.) b. Return on investment. (Round your answers to 2 decimal places.) c. Return on equity. (Round your answers to 2 decimal places.) d. Earnings per share. (Round your answers to 2 decimal places.) e. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $6.05 and $4.94, respectively). (Round your Intermediate calculations and final answers to 2 decimal places.) f. Book value per share of common stock. (Round your answers to 2 decimal places.) g. Times interest earned. (Round your answers to 2 decimal places.) h. Working capital. 1. Current ratio. (Round your answers to 2 decimal places.) J. Quick (acid-test) ratio. (Round your answers to 2 decimal places.) k. Accounts receivable turnover. (Round your answers to 2 decimal places.) I. Inventory turnover. (Round your answers to 2 decimal places.) m. Debt-to-equity ratio. (Round your answers to 2 decimal places.) n. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) a Net margin b. Return on investment C. Return on equity Year 2 % % % Year 1 % % % d. Earnings per share e. Price-earnings ratio times times f. Book value per share of common stock. g Times interest earned times times |h. Working capital i. Current ratio Quick (acid-test) ratio k. Accounts receivable turnover L Inventory turnover times times times times m. Debt-to-equity ratio n. Debt-to-assets ratio % %