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. Year 1 $667, 116 7,030 3,507 3,621 681,274 KANSAS PIZZA PANTRY, INC., AND SUBSIDIARIES Consolidated Statements of Operations (amounts in thousands, except for per share data) Year 3 Year 2 Revenues : Restaurant sales $628, 747 $653,685 Royalties from licensing agreement 7,922 9,239 Domestic franchise revenues 6,400 3,434 International franchise revenues 4,653 2,378 Total revenues 647,722 668, 736 Costs and expenses: Food, beverage and paper supplies 151,732 157,181 Labor 237,883 248,850 Direct operating and occupancy 143, 920 143, 473 Cost of sales 533,535 549,504 General and administrative 51,031 46,366 Depreciation and amortization 37,456 40, 631 Pre-opening costs 3,569 1,993 Loss on impairment of property and 19,452 24,441 equipment Store closure costs 1,858 614 Litigation, settlement and other costs 9,209 1,759 Total costs and expenses 656, 110 665,308 Operating (loss) /income (8,388) 3,428 Interest expense, net (46) (773) (Loss)/income before income tax (8,434) 2,655 (benefit)/provision Income tax (benefit)/provision (4,039) (2,241) Net (loss)/income $ (4,395) $ 4,896 Net (loss)/income per common share: Basic $ (0.17) $ $ Diluted $ (0.17) $ 0.19 Weighted average shares used in calculating net (loss)/income per common share: Basic 25, 238 25,564 Diluted 25, 238 24,893 166, 276 248,026 141,117 555, 419 52,392 41,049 5, 228 14,086 1,783 1,486 671, 443 13,131 (1,774 11,357 3,145 8,212 $ 0.19 $ $ 0.34 0.34 25,943 25,961 Year 2 $ 28, 324 14,041 8,557 8,576 7,957 2,781 70,236 258, 416 26,511 5,372 5,464 8, 409 $ 374,408 KANSAS PIZZA PANTRY, INC., AND SUBSIDIARIES Consolidated Balance Sheets (in thousands, except for share data) Year 3 Assets Current assets: Cash and cash equivalents $ 54 Other receivables 15,344 Inventories 7,627 Current deferred tax asset, net 9,575 Prepaid rent 456 Other prepaid expenses 3,418 Total current assets 36, 366 Property and equipment, net 244,446 Noncurrent deferred tax asset, net 23,601 Goodwill 4,922 Other intangibles, net 5,587 Other assets 9,813 Total assets $324,735 Liabilities and stockholders' equity Current liabilities: : Accounts payable $ 18,875 Accrued compensation and benefits 25, 223 Accrued rent 22,674 Deferred rent credits 4,958 Other accrued liabilities 15,190 Gift card liability 15,477 Store closure reserve 129 Total current liabilities 102,526 Long-term debt --- Other liabilities 10,186 Deferred rent credits, net of current portion 34,677 Income taxes payable, net of current portion 349 Commitments and contingencies Stockholders' equity: Common stock-$0.01 par value, 80,150,000 shares authorized, 32,100,000 and 31,700,000 shares issued and outstanding at end of Year 3, and Year 2, respectively 321 Additional paid-in capital 164,563 Retained earnings 12,113 Total stockholders' equity 176,997 Total liabilities and stockholders' equity $324,735 $ 12,763 24,701 22,287 5,245 13,915 22,140 401 101,452 23, 800 10,728 33,978 12,125 317 175,500 16,508 192, 325 $ 374,408 Required: 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 $1.93. (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.) Answer is complete but not entirely correct. a. Return on equity Net profit margin Inventory turnover (17.41) % 0.68 X % b. C. 65.93 0.35 d. Current ratio e. 0.24 X f. . Quick ratio Debt-to-equity ratio Price/earnings ratio 0.00 X g. 11.35 X