Financial statements for Thornton Company follow. THORNTON COMPANY Balance Sheets As of December 31 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 Year 4 Year 3 $ 24,000 21,600 $ 20,000 7,600 57,000 49,000 142,000 150,000 26,000 11,000 270,600 237,600 22,000 15,000 290,000 275,000 29,000 $611,600 24,000 $551,600 113,800 $ 40,000 $ 17,300 100,000 25,000 19,000 178,800 136,300 Bonds payable 140,000 140,000 Other 31,000 26,000 Total noncurrent liabilities 171,000 166,000 Total liabilities 349,800 302,300 Stockholders' equity Preferred stock, (par value $10, 4% cumulative, non-participating; 6,000 shares authorized and issued) 60,000 60,000 Common stock (no par; 50,000 shares authorized; 10,000 shares issued) Retained earnings 60,000 60,000 141,800 129,300 Total stockholders' equity 261,800 249,300 Total liabilities and stockholders' equity $611,600 $551,600 THORNTON COMPANY Statements of Income and Retained Earnings For the Years Ended December 31 Year 4 Year 3 Revenues Sales (net) Other revenues $390,000 $370,000 11,200 8,200 Total revenues 401,200 378,200 Expenses Cost of goods sold 195,000 151,000 Selling, general, and administrative 71,000 66,000 Interest expense 12,800 12,000 Income tax expense 103,000 102,000 Total expenses 381,800 331,000 Net earnings (net income) 19,400 47,200 Retained earnings, January 1 129,300 89,000 Less: Preferred stock dividends Common stock dividends 2,400 2,400 4,500 4,500 Retained earnings, December 31 $141,800 $129,300 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 $50,000). (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 $156,000). (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.) I. Net margin. (Round your answers to 2 decimal places.) m. Turnover of assets (average total assets in Year 3 is $551,600). (Round your answers to 2 decimal places.) n. Return on investment (average total assets in Year 3 is $551,600). (Round your answers to 2 decimal places.) o. Return on equity (average stockholders' equity in Year 3 is $249,300). (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, $12.55; Year 4, $14.10). (Round your intermediate calculations and final answer to 2 decimal places.) s. Dividend yield on common stock. (Round your answers to 2 decimal places.) a. Working capital b. Current ratio C. Quick ratio d. e. Receivables turnover (beginning receivables at January 1, Year 3, were $50,000) Average days to collect accounts receivable f. Inventory turnover (beginning inventory at January 1, Year 3, was $156,000) g. Number of days to sell inventory h. Debt-to-assets ratio i. Debt-to-equity ratio j. Number of times interest was earned k. Plant assets to long-term debt L Net margin Year 4 Year 3 times times days days times times days days % % times times % % m. Turnover of assets (average total assets in Year 3 is $551,600) n. 0. Return on investment (average total assets in Year 3 is $551,600) % % Return on equity (average stockholders' equity in Year 3 is $249,300) % % p. Earnings per share (total shares outstanding is unchanged) per share per share q. Book value per share of common stock per share per share . Price-earnings ratio (market price per share: Year 3, $12.55; Year 4, $14.10) S. Dividend yield on common stock % %