Calculate the following ratios for Bartlett Company in 2018, compare them with the ratios in 2019 and provide one- or two-sentence comments on how Bartlett Company did over the past two years on each ratio. One example is done for you.

• Debt ratio
• Debt-to-equity ratio
• Times interest earned ratio
• Gross profit margin
• Operating profit margin
• Net profit margin
• Earnings per share
• Return on total assets
• Return on equity
• P/E ratio
• M/B ratio
• (Assuming the stock price at the end of 2018 was $25.)

Example:

Current ratio (2018)= 1,004/483=2.08.

Current ratio (2019)= 1.97

It indicates that in general Bartlett Company has a good liquidity position. However, it is decreasing from 2018 to 2019, so managers need to keep an eye on this ratio.

Table 3.1 Bartlett Company Income Statements (5000) For the years ended December 31 2019 2018 $3,074 $2,567 Sales revenue 2,088 1,711 Less: Cost of goods sold $ 986 $ 856 Gross profits Less: Operating expenses $ 100 $ 108 Selling expense 194 187 General and administrative expenses 35 Other operating expenses 239 223 Depreciation expense $ 568 $ 553 Total operating expense $ 303 Operating profits S 418 93 91 Less: Interest expense Net profits before taxes $ 325 $ 212 94 64 Less: Taxes Net profits after taxes $ 231 $ 148 Less: Preferred stock dividends 10 10 Earnings available for common stockholders $ 221 $ 138 $2.90 $1.81 Earnings per share (EPS) Dividend per share (DPS) $1.29 S0.75 Table 3.2 Bartlett Company Balance Sheets (5000) December 31 Assets 2019 2018 Cash S 363 $ 288 68 51 Marketable securities 503 365 Accounts receivable Inventories 289 300 Total current assets $1,223 $1,004 Land and buildings $2,072 $1,903 Machinery and equipment 1,866 1,693 Furniture and fixtures 358 316 Vehicles 275 314 Other (includes financial leases) 98 96 Total gross fixed assets (at cost) $4,669 $4,322 Less: Accumulated depreciation 2,295 2,056 Net fixed assets $2,374 S2,266 Total assets $3,597 $3,270 Liabilities and Stockholders' Equity Accounts payable $ 382 $ 270 79 99 Notes payable 159 114 Accruals Total current liabilities $ 620 $ 483 1,023 967 Long-term debt (includes financial leases) Total liabilities $1,643 $1,450 Preferred stock: cumulative 5%, $100 par, 2,000 $ 200 $ 200 shares authorized and issued 191 191 Common stock: $2.50 par, 100,000 shares authorized, shares issued and outstanding in 2019: 76,262; in 2018: 76,244 Paid-in capital in excess of par on common stock 428 417 Retained earnings 1,135 1,012 Total stockholders' equity $1,954 $1,820 Total liabilities and stockholders' equity $3,597 $3,270