he following financial statements apply to Rooney Company:

	Year 4				Year 3
Revenues
Net sales	$	210,300			$	176,800
Other revenues		8,600				6,100
Total revenues		218,900				182,900
Expenses
Cost of goods sold		126,000				102,100
Selling expenses		20,100				18,100
General and administrative expenses		9,600				8,600
Interest expense		1,800				1,800
Income tax expense		20,900				16,100
Total expenses		178,400				146,700
Net income	$	40,500			$	36,200
Assets
Current assets
Cash	$	5,200			$	6,800
Marketable securities		2,400				2,400
Accounts receivable		36,000				30,800
Inventories		100,700				95,800
Prepaid expenses		4,700				3,700
Total current assets		149,000				139,500
Plant and equipment (net)		106,600				106,600
Intangibles		21,500				0
Total assets	$	277,100			$	246,100
Liabilities and Stockholders Equity
Liabilities
Current liabilities
Accounts payable	$	39,300			$	55,000
Other		15,500				16,300
Total current liabilities		54,800				71,300
Bonds payable		65,100				66,100
Total liabilities		119,900				137,400
Stockholders equity
Common stock (48,000 shares)		114,700				114,700
Retained earnings		42,500				(6,000	)
Total stockholders equity		157,200				108,700
Total liabilities and stockholders equity	$	277,100			$	246,100

Required Calculate the following ratios for Year 3 and Year 4. Since Year 2 numbers are not presented do not use averages when calculating the ratios for Year 3. Instead, use the number presented on the Year 3 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 3 and Year 4 were $6.07 and $4.83, 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. 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.) l. 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.)

+ 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.) points 2019 2018 eBook Print References times times times times a. Net margin b. Return on investment c. Return on equity d. Earnings per share e. Price-eamings ratio f. Book value g. Interest earned h. Working capital i. Current ratio j. Quick (acid-test) ratio k. Accounts receivable turnover I. Inventory turnover m. Debt to equity ratio n. Debt to assets ratio times times times times %