es The following financial statements apply to Walton Company: Year 2 $ 219,600 Year 1 $ 182,600 Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses. Interest expense Income tax expense Total expenses Net income 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 Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (50,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 125,600 101,200 20,500 18,500 9,500 8,500 1,700 1,700 21,000 17,200 178,300 147,100 $ 41,300 $ 35,500 $ 5,000 $ 7,900 1,800 1,800 35,700 31,000 101,100 95,000 3,900 2,900 147,500 105,100 138,600 105,100 20,100 0 $ 272,700 $ 243,700 $ 39,200 $ 34,500 16,000 16,700 55,200 51,200 64,800 65,800 120,000 117,000 113,500 113,500 39,200 152,700 $272,700 13,200 126,700 $ 243,700 Total liabilities Stockholders' equity Common stock (50,000 shares) Retained earnings 120,000 117,000 113,500 113,500 Total stockholders' equity Total liabilities and stockholders' equity 39,200 152,700 $272,700 13,200 126,700 $ 243,700 erences Required Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. a. Net margin. (Round your answers to 2 decimal places.) b. Return on investment. (Round your answers to 2 decimal places.) c. Return on equity. (Round your answers to 2 decimal places.) d. Earnings per share. (Round your answers to 2 decimal places.) e. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $6.12 and $4.80, respectively). (Round your intermediate calculations and final answers to 2 decimal places.) f. Book value per share of common stock. (Round your answers to 2 decimal places.) g. Times interest earned. Exclude extraordinary Income in the calculation as they cannot be expected to recur and, therefore, will not be available to satisfy future interest payments. (Round your answers to 2 decimal places.) h. Working capital. 1. Current ratio. (Round your answers to 2 decimal places.) j. Quick (acid-test) ratio. (Round your answers to 2 decimal places.) k. Accounts receivable turnover. (Round your answers to 2 decimal places.) 1. Inventory turnover. (Round your answers to 2 decimal places.) m. Debt-to-equity ratio. (Round your answers to 2 decimal places.) n. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) Net margin Year 2 Year 1 % % 15 points H. Working capital. i. Current ratio. (Round your answers to 2 decimal places.) j. Quick (acid-test) ratio. (Round your answers to 2 decimal places.) k. Accounts receivable turnover. (Round your answers to 2 decimal places.) I. Inventory turnover. (Round your answers to 2 decimal places.) m. Debt-to-equity ratio. (Round your answers to 2 decimal places.) n. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) References a. Net margin b. Return on investment C. Return on equity Year 2 Year 1 % % % % % % d. Earnings per share e. Price-earnings ratio times times f. Book value per share of common stock g. Times interest earned times times h. Working capital L Current ratio Quick (acid-test) ratio k. Accounts receivable turnover times times L Inventory turnover times times m. Debt-to-equity ratio n. Debt-to-assets ratio % %