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Because you own the common stock of Phantom Corporation, a paper manufacturer, you decide to analyze the firms performance for the most recent year. The

Because you own the common stock of Phantom Corporation, a paper manufacturer, you decide to analyze the firms performance for the most recent year. The following data are taken from the firms latest annual report:

December 31 Current Year Prior Year
Quick assets $710,000 $562,000
Inventory and prepaid expenses 482,000 422,000
Other assets 4,908,000 4,310,000
Total Assets $6,100,000 $5,294,000
Current liabilities $834,000 $674,000
10% Bonds payable 1,550,000 1,550,000
8% Preferred stock, $100 par value 480,000 480,000
Common stock, $10 par value 2,700,000 2,160,000
Retained earnings 536,000 430,000
Total Liabilities and Stockholders Equity $6,100,000 $5,294,000

For the current year, net sales amount to $11,400,000, net income is $585,000, and preferred stock dividends paid are $42,000.

Calculate the following ratios for the current year:

1. Profit margin Round answer to one decimal place (ex: 0.144555 = 14.5%). Answer%

2. Return on assets Round answer to one decimal place (ex: 0.144555 = 14.5%). Answer%

3. Return on common stockholders equity Round answer to one decimal place (ex: 0.144555 = 14.5%). Answer%

4. Quick ratio Round answer to two decimal places (ex: 1.34543 = 1.35). Answer

5. Current ratio Round answer to two decimal places (ex: 1.34543 = 1.35). Answer

6. Debt-to-equity ratio Round answer to two decimal places (ex: 1.34543 = 1.35).

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