Kansas Pizza Pantry opened its first restaurant in Lawrence, Kansas in 1985. Almost immediately after the first location opened, it expanded from Kansas Pizza Pantry to more than 250 locations in more than 30 states and 11 countries. Kansas Pizza Pantry completed an initial public offering in August 2000. Several years ago, Silver Capital completed the acquisition of Kansas Pizza Pantry and, as a result of the acquisition, the company's common stock is no longer publicly traded. KANSAS PIZZA PANTRY, INC., AND SUBSIDIARIES Consolidated Statements of Operations (amounts in thousands, except for per share data) Year 3 Year 2 Year 1 Revenues: Restaurant sales Royalties from licensing agreement $628,877 6,362 $652,385 $665,816 7,939 6,648 Domestic franchise revenues 3,540 2,784 2,857 International franchise revenues 2,703 2,118 2,321 Total revenues 641,482 665,226 677,634 Costs and expenses: Food, beverage and paper supplies Labor 149,132 154,581 165,626 237,233 247,550 247,376 Direct operating and occupancy 142,620 142,173 140,467 Cost of sales 520,985 544,304 553,469 General and administrative 58,771 58,201 51,742 Depreciation and anortization 37,866 48,241 40,399 Pre-opening costs 3,309 Loss on impairment of property and 18,802 equipment 1,863 23,141 4,578 13,436 Store closure costs 1,728 Litigation, settlement and other costs. 8,819 Total costs and expenses 649,480 549 1,629 661,928 1,133 836 Operating (loss)/income Interest expense, net (7,998) 120) 3,298 (786) 665,593 12,481 (1,384 (Loss)/income before income tax (8,818) 2,512 11,097 (5,599) (2,111) 2,495 (benefit)/provision Income tax (benefit)/provision Net (loss)/incore Net (loss)/income per common share: Basic Diluted Weighted average shares used in calculating net (loss)/incore per cormon share: $ (2,419) $ 4,623 $ 8,602 $(0.04) $ 8.19 $ 0.34 $18.04) $ 8.19 $ 0.34 Basic Diluted Required: 24,588 24,588 24,264 25,293 24,243 25,311 KANSAS PIZZA PANTRY, INC., AND SUBSIDIARIES Consolidated Balance Sheets (in thousands, except for share data) Year 3 Year 2 Assets Current assets: Cash and cash equivalents $16,911 $ 22,344 Other receivables 12,894 12,741 Inventories 6,867 5,957 Current deferred tax asset, net 8,485 7,276 Prepaid rent 261 5,357 Other prepaid expenses 2,638 2,131 Total current assets 46,376 55,806 Property and equipment, net 241,846 255,016 Noncurrent deferred tax asset, net Goodwill 22,301 25,211 4,662 4,722 Other intangibles, net 4,937 4,814 8,513 7,109 $328,635 $353,478 Other assets Total assets Liabilities and stockholders' equity Current liabilities: Accounts payable Accrued compensation and benefits Accrued rent Deferred rent credits Other accrued liabilities $17,315 $11,463 23,533 23,401 20,724 19,687 4,178 3,945 13,890 11,315 Gift card liability Store closure reserve Total current liabilities Long-term debt 14,697 20,848 64 336 94,401 98,987 22,500 Other liabilities 9,926 8,120 Deferred rent credits, net of current portion Income taxes payable, net of current portion Commitments and contingencies 33,377 32,678 323 9,525 Stockholders' equity: Common stock-$8.81 par value, 80,020,000 shares authorized, 25,000,000 and 25,280,000 shares issued and outstanding at end of Year 3, and Year 2, respectively 256 252 Additional paid-in capital Retained earnings 177,563 174,200 12,789 15,208 Total stockholders' equity Total liabilities and stockholders' equity 190,608 189,668 $328,635 $353,470 1. Compute the following ratios for Year 3 using information from the company annual report that was issued before Kansas Pizza Pantry was acquired. Assume a market price per share of $1.16. (Round your answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34). Negative amounts should be indicated by a minus sign.) a. Return on equity b. Net profit margin c. Inventory turnover d. Current ratio e. Quick ratio f. g. Debt-to-equity ratio Price/earnings ratio % %