Financial statements for Rooney Company follow. ROONEY COMPANY Balance Sheets As of December 31 Year 4 Year 3 $ 22,500 21,300 54,000 139,000 28,000 264,800 22,000 275,000 31,000 $592,800 $ 18,500 7,300 46,000 147,000 13,000 231,800 15,000 260,000 26,000 $532,800 Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land 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, 58 cumulative, non-participating: 8,000 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 $ 35,200 103,800 22,000 161,000 $ 14,500 90,000 16,000 120,500 110,000 28,000 138,000 299,000 110,000 23,000 133,000 253,500 80,000 80,000 133,800 293,800 $592,800 80,000 80,000 119,300 279, 300 $532,800 Year 3 $340,000 7,600 347,600 ROONEY COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Year 4 Revenues Sales (net) $360,000 Other revenues 10,600 Total revenues 370,600 Expenses Cost of goods sold 180,000 Selling, general, and administrative 68,000 Interest expense 11,900 Income tax expense 88,000 Total expenses 347,900 Net earnings (net income) 22,700 Retained earnings, January 1 119,300 Less: Preferred stock dividends 4,000 Common stock dividends 4,200 Retained earnings, December 31 $133,800 142,000 63,000 11,100 87,000 303, 100 44,500 83,000 4,000 4,200 $119,300 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 $47,000). (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 $153,000). (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 $532,800). (Round your answers to 2 decimal places.) n. Return on investment (average total assets in Year 3 is $532,800). (Round your answers to 2 decimal places.) o. Return on equity (average stockholders' equity in Year 3 is $279,300). (Round your answers to 2 decimal places.) p. Earnings per share (total shares outstanding is unchanged). (Round your answers to 2 decimal places.) 4. Book value per share of common stock. (Round your answers to 2 decimal places.) r. Price-earnings ratio (market price per share: Year 3. $12.40; Year 4, $13.80). (Round your intermediate calculations and final answer to 2 decimal places.) s. Dividend yield on common stock. (Round your answers to 2 decimal places.) Year 4 Year 3 8 c times days times days % times days times days % 1 Working capital b. Current ratio Quick ratio d. Receivables turnover (beginning receivables at January 1, Year 3, were $47.000) e. Average days to collect accounts receivable Inventory turnover (beginning inventory at January 1, Year 3, was $153,000) 9 Number of days to sell inventory h Debt-to-assets ratio Debt-to-equity ratio Number of times interest was earned Plant assets to long-term debt 1. Net margin m. Turnover of assets (average total assets in Year 3 is $532,800) Return on investment (average total assets in Year 3 is $532, 800) Return on equity (average stockholders' equity in Year 3 is $279,300) P. Earnings per share (total shares outstanding is unchanged) 9. Book value per share of common stock Price-earnings ratio (market price per share: Year 3. $12.4: Year 4. $13.80) Dividend yield on common stock times times K % % n. % o % % % per share per share per share per share S. % %