Financial statements for Thornton Company follow. THORNTON COMPANY Balance Sheets As of December 31 Year 4 Year 3 Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items $ 20,000 7,600 Total current assets Bonds payable Other Total noncurrent liabilities 140,000 31,000 171,000 Total liabilities 349,800 140,000 26,000 166,000 302,300 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) 60,000 Retained earnings 141,800 60,000 129,300 Total stockholders' equity Total liabilities and stockholders' equity 261,800 $611,600 249,300 $551,600 Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities $ 24,000 21,600 57,000 49,000 142,000 26,000 150,000 11,000 270,600 237,600 Required 22,000 15,000 290,000 275,000 29,000 $611,600 a. Working capital. $ 40,000 113,800 25,000 178,800 24,000 $551,600 $ 17,300 100,000 19,000 136,300 Calculate the following ratios for Year 4 and Year 3. 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.) Year 4 Year 3 a. Working capital THORNTON COMPANY b. Current ratio Statements of Income and Retained Earnings For the Years Ended December 31 Revenues Sales (net) Other revenues Year 4 c. Quick ratio Year 3 d. Receivables turnover (beginning receivables at January 1, Year 3, were $50,000) times times $390,000 $370,000 e. Average days to collect accounts receivable days days 11,200 8,200 f. Total revenues 401,200 378,200 Inventory turnover (beginning inventory at January 1, Year 3, was $156,000) times times Expenses g. Number of days to sell inventory days days Cost of goods sold 195,000 151,000 h. Debt-to-assets ratio % % Selling, general, and 71,000 66,000 i. Debt-to-equity ratio administrative j. Number of times interest was earned times times Interest expense 12,800 12,000 k. Plant assets to long-term debt Income tax expense 103,000 102,000 I.Net margin % % Total expenses 381,800 331,000 m. Turnover of assets (average total assets in Year 3 is $551,600) Net earnings (net income) 19,400 47,200 Retained earnings, January n. 129,300 89,000 1 Return on investment (average total assets in Year 3 is $551,600) % % Less: Preferred stock 2,400 2,400 0. Return on equity (average stockholders' equity in Year 3 is $249,300) % % dividends dividends Common stock Retained earnings, December 4,500 4,500 $141,800 $129,300 r. 31 p. Earnings per share (total shares outstanding is unchanged) q. Book value per share of common stock Price-earnings ratio (market price per share: Year 3, $12.55; Year 4, $14.10) per share per share per share per share s. Dividend yield on common stock % %