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 $628,697 $654,185 $667,616 Royalties from licensing agreement 8,522 9,739 7,180 Domestic franchise revenues 7,500 3,684 3,757 International franchise revenues 5,483 2,478 4,121 Total revenues 650, 122 678,086 682,674 Costs and expenses: Food, beverage and paper supplies 152,732 158,181 166,526 Labor 238,133 249,350 248, 276 Direct operating and occupancy 144,420 143,973 141,367 Cost of sales 535,285 551,584 556,169 General and administrative 51,131 44,891 52,642 Depreciation and amortization 37,606 40, 781 41,299 Pre-opening costs 3,669 2,843 5,478 Loss on impairment of property and equipment 19,702 24,941 14,336 Store closure costs 1,908 2,033 Litigation, settlement and other costs 9,359 1,809 1,736 Total costs and expenses 658,660 666, 688 673,693 Operating (loss)/income (8,538) 3,478 13,381 Interest expense, net (56) (768) (1,924 (LOSS)/income before income tax (benefit)/provision (8,594) 2,710 11,457 Income tax (benefit)/provision (3,439) (2,291) 3,395 Net (loss)/income $ (5,155) $ 5,601 $ 8,062 Net (loss)/income per common share: Basic $ (0.22) $ 0.19 $ 0.34 Diluted $ (@.22) $ 8.19 $ 0.34 Weighted average shares used in calculating net (loss) /income per common share: Basic 25,488 26,864 26,193 Diluted 25,488 25, 143 26,211 639 Year 2 $ 30,624 14,541 9,557 9,076 8,957 3,031 75,786 259,416 27,011 5,622 5,714 8,909 $ 382,458 KANSAS PIZZA PANTRY, INC., AND SUBSIDIARIES Consolidated Balance Sheets (in thousands, except for share data) Year 3 Assets Current assets: Cash and cash equivalents $ 921 other receivables 16,594 Inventories 8,227 Current deferred tax asset, net 10,025 Prepaid rent 531 other prepaid expenses 3,718 Total current assets 48,016 Property and equipment, net 245,446 Noncurrent deferred tax asset, net 24,101 Goodwill 5,822 other intangibles, net 5,837 Other assets 10,313 Total assets $330, 735 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 19,475 Accrued compensation and benefits 25,873 Accrued rent 23,424 Deferred rent credits 5,258 other accrued liabilities 15,690 Gift card liability 15,777 Store closure reserve 154 Total current liabilities 185,651 Long-term debt other liabilities 10,286 Deferred rent credits, net of current portion 42,677 Income taxes payable, net of current portion 359 Commitments and contingencies Stockholders' equity: Common stock-se.e1 par value, 80,200, eee shares authorized, 34,600,000 and 34,200,eee shares issued and outstanding at end of Year 3, and Year 2, respectively 346 Additional paid in capital 159,563 Retained earnings 11,853 Total stockholders' equity 171,762 Total liabilities and stockholders' equity $330,735 $ 13,263 25, 201 23,287 5,745 14,915 22,640 426 105,477 24,300 11,728 34,478 13,125 342 176,600 17,008 193,350 $ 382,458 1. Compute the following ratlos 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 $2.41. (Round your answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (l.e. 0.1234 should be entered as 12.34). Negative amounts should be Indicated by a minus sign.) C a. Return on equity b. Net profit margin Inventory turnover d. Current ratio Quick ratio f. Debt-to-equity ratio g. Pricelearnings ratio . CD