Financial statements for Perez Company follow. PEREZ COMPANY 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 $ 21,500 21,100 52,000 137,000 26,000 257,600 32,000 265,000 29,000 $583,600 $ 17,500 7,100 44,000 145,000 11,000 224,600 25,000 250,000 24,000 $523,600 $ 30,200 98,800 26,000 155,000 $ 12,900 85,000 20,000 117,900 Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other Total noncurrent liabilities Total liabilities Stockholders' equity Preferred stock, (par value $10, 5% cumulative, non-participating; 6,000 shares authorized and issued) Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 150,000 26,000 176,000 331,000 150,000 21,000 171,000 288,900 60,000 60,000 132,600 252,600 $583,600 60,000 60,000 114,700 234,700 $523,600 Year 3 $320,000 7,200 327,200 PEREZ COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Year 4 Revenues Sales (net) $340,000 Other revenues 10,200 Total revenues 350,200 Expenses Cost of goods sold 170,000 Selling, general, and administrative 66,000 Interest expense 11,300 Income tax expense 78,000 Total expenses 325,300 Net earnings (net income) 24,900 Retained earnings, January 1 114,700 Less: Preferred stock dividends 3,000 Common stock dividends 4,000 Retained earnings, December 31 $ 132,600 136,000 61,000 10,500 77,000 284,500 42,700 79,000 3,000 4,000 $ 114,700 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. Receivables turnover (beginning receivables at January 1, Year 3, were $45,000). (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 $151,000). (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.) i. 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.) 1. Net margin. (Round your answers to 2 decimal places.) m. Turnover of assets (average total assets in Year 3 is $523,600). (Round your answers to 2 decimal places.) n. Return on investment (average total assets in Year 3 is $523,600). (Round your answers to 2 decimal places.) o. Return on equity (average stockholders' equity in Year 3 is $114,700). (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, $12.30; Year 4, $13.60). (Round your intermediate calculations and final answe to 2 decimal places.) s. Dividend yield on common stock. (Round your answers to 2 decimal places.) Year 4 Year 3 Year 4 Year 3 a. Working capital Current ratio b. c. Quick ratio d. times times e. 50 days 56 days times f. times g. days days % h. % i. j. times times k. Receivables turnover (beginning receivables at January 1, Year 3, were $45,000) Average days to collect accounts receivable Inventory turnover (beginning inventory at January 1, Year 3, was $151,000) Number of days to sell inventory Debt-to-assets ratio Debt-to-equity ratio Number of times interest was earned Plant assets to long-term debt Net margin Turnover of assets (average total assets in Year 3 is $523,600) Return on investment (average total assets in Year 3 is $523,600) Return on equity (average stockholders' equity in Year 3 is $114,700) Earnings per share (total shares outstanding is unchanged) Book value per share of common stock Price-earnings ratio (market price per share: Year 3, $12.3; Year 4, $13.60) Dividend yield on common stock I. 7.32% 1.401% m. n. % % 0. % % p. per share per share 9. per share per share r. S. % %