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 2015 2014 $ 4,000 $ 8,000 1,000 1,000 35,000 32,000 100,000 96,000 3,000 2,000 143,000 139,000 105,000 105,000 20,000 0 $268,000 $244,000 Accounts payable Other $ 40,000 $ 54,000 17,000 15,000 Total current liabilities 57,000 69,000 Bonds payable 66,000 67,000 Total liabilities 123,000 136,000 Stockholders' equity Common stock (50,000 shares) Retained earnings 115,000 115,000 30,000 (7,000) Total stockholders' equity 145,000 108,000 Total liabilities and stockholders' equity $268,000 $244,000 Required Calculate the following ratios for 2014 and 2015. When data limitations prohibit computing aver- ages, use year-end balances in your calculations. Round computations to two decimal points. a. Net margin b. Return on investment c. Return on equity d. Earnings per share e. Price-earnings ratio (market prices at the end of 2014 and 2015 were $5.94 and $4.77, respectively) f. Book value per share of common stock g. Times interest earned h. Working capital i. Current ratio j. Quick (acid-test) ratio k. Accounts receivable turnover 1. Inventory turnover m. Debt to equity ratio n. Debt to assets ratio Problem 9-23 Ratio analysis The following financial statements apply to Robin Company. 2015 2014 Revenues Net sales $210,000 $175,000 Other revenues 4,000 5,000 Total revenues 214,000 180,000 Expenses Cost of goods sold 126,000 103,000 Selling expenses 21,000 19,000 General and administrative expenses 11,000 10,000 Interest expense 3,000 3,000 Income tax expense 21,000 18,000 Total expenses 182,000 153,000 Earnings from continuing operations before extraordinary items 32,000 27,000 Extraordinary gain (net of $3,000 tax) 4,000 0 Net income $ 36,000 $ 27,000 continued