Balance Sheets As of December: 31 Year 4. Year 3 Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets ILabilities and Stockholders' Equity Liabilitieg Current liabilitios Notes payable Accounts payable Salaries payable Total current liabilities Noneurrent 11abilitios Bonds payable Other Total noncurrent 1iabilities Total 11abi11ties Stoekholders, equity preferred etook, (par value $10,51 cumulative, non-participating, 8,000 bhares authorized and is sued) Conmon stoek (no pari 50,000 ahares authorizedt 10,000 shares iseued) Retained eorninga Total stoekholders' equity Total Habilitien and stookholders' equity STUART COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Required Calculate the following ratios for Year 4 and Year 3. a. Working capital. b. Current ratio. (Round your answers to 2 decimal places.) c. Quick ratio. (Round your answers to 2 decimal places.) d. Recelvables turnover (beginning receivables at January 1, Year 3, were \$49.000). (Round your answers to 2 decimal places.) e. Average days to collect accounts receivable. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) f. Inventory turnover (beginning inventory at January 1, Year 3, was $155,000 ). (Round your answers to 2 decimal places.) g. Number of days to sell inventory. (Use 365 days in a year. Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.) h. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) 1. Debt-to-equity ratio. (Round your answers to 2 decimal places.) J. Number of times interest was earned. (Round your answers to 2 decimal places.) K. Plant assets to long-term debt. (Round your answers to 2 decimal places.) I. Net margin. (Round your answers to 2 decimal places.) m. Turnover of assets (average total assets in Year 3 is $552.000 ). (Round your answers to 2 decimal places.) n. Return on investment (average total assets in Year 3 is $552,000 ). (Round your answers to 2 decimal places.) o. Return on equity (average stockholders' equity in Year 3 is $284,900 ). (Round your answers to 2 decimal places.) p. Earnings per share (total shares outstanding is unchanged). (Round your answers to 2 decimal places.) q. Book value per share of common stock. (Round your answers to 2 decimal places.) r. Price-earnings ratio (market price per share: Year 3, \$12.50; Year 4, $14.00 ). (Round your intermediate calculations and final answer to 2 decimal places.) 5. Dividend yield on common stock. (Round your answers to 2 decimal places.) 5. Dividend yield on common stock. (Round your answers to 2 decimal places.) Based on the ratios calculated in the Timed Exam Problem Question 1, comment on the Company's performance in the following areas (using the grouping of related ratios as outlined in the textbook). Compare the change between the years. Liquidity Solvency Management's Effectiveness The Company's Position in the Stock Market
