2019 2018

Balance Sheets As of December 31 2019 2018 $ 20,000 20,800 49,000 134,000 28,000 251,800 32,000 295,000 29,000 $607,800 $ 16,000 6,800 41,000 142,000 13,000 218,800 25,000 280,000 24,000 $547,800 Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other Total noncurrent liabilities Total liabilities Stockholders' equity Preferred stock, (par value $10, 4% cumulative, non-participating; 8,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 31,600 113,800 23,000 168,400 $ 17,700 100,000 17,000 134,700 120,000 32,000 152,000 320,400 120,000 27,000 147,000 281,700 80,000 80,000 127,400 287,400 $607,800 80,000 80,000 106,100 266,100 $547,800 2018 $290,000 6,600 296,600 GIBSON COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 2019 Revenues Sales (net) $310,000 Other revenues 9,600 Total revenues 319,600 Expenses Cost of goods sold 155,000 Selling, general, and administrative 63,000 Interest expense 10,400 Income tax expense 63,000 Total expenses 291,400 Net earnings (net income) 28, 200 Retained earnings, January 1 106, 100 Less: Preferred stock dividends 3,200 Common stock dividends 3,700 Retained earnings, December 31 $127,400 127,000 58,000 9,600 62,000 256,600 40,000 73,000 3,200 3,700 $106,100 I. Net margin. (Round your answers to 2 decimal places.) m. Turnover of assets. (Round your answers to 2 decimal places.) n. Return on investment. (Round your answers to 2 decimal places.) o. Return on equity. (Round your answers to 2 decimal places.) % % 1. Net margin m. Asset turnover n. Return on investment o. Return on equity % % % %