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 $665,716 6,610 2,807 2,221 677,354 165,576 247,326 140, 417 553,319 51,692 40,349 4,528 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 $628,887 $652, 285 Royalties from licensing agreement 6,242 7,839 Domestic franchise revenues 3,320 2,734 International franchise revenues 2,553 2,098 Total revenues 641,002 664,956 Costs and expenses: Food, beverage and paper supplies 148,932 154,381 Labor 237,183 247, 450 Direct operating and occupancy 142,520 142,073 Cost of sales 528, 635 543,904 General and administrative 50, 751 50,496 Depreciation and amortization 37,036 40, 211 Pre-opening costs 3,289 1,853 Loss on impairment of property and 18,752 equipment 23,041 Store closure costs 1,718 544 Litigation, settlement and other costs 8,789 1,619 Total costs and expenses 648,970 661,668 Operating (loss)/income (7,968) 3,288 Interest expense, net (787) (Loss) /income before income tax (7,986) 2,501 (benefit)/provision Income tax (benefit)/provision (5, 719) (2,101) Net (loss)/income $ (2,267 $ 4,602 Net (loss) /income per common share: Basic (0.03) $ 0.19 Diluted (0.03) $ 0.19 Weighted average shares used in calculating net (loss)/income per common share: Basic 24,538 24,164 Diluted 24,538 24,193 13, 386 1,083 786 665, 143 12,431 (1,354 (18) 11,077 2,445 8,632 S $ 0.34 0.34 S $ 25,243 25, 261 Year 2 $ 21,884 12,641 5,757 7,176 5, 157 2,081 54,696 255,616 25, 111 4,672 4,764 7,009 $ 351,868 KANSAS PIZZA PANTRY, INC., AND SUBSIDIARIES Consolidated Balance Sheets (in thousands, except for share data) Year 3 Assets Current assets: Cash and cash equivalents $ 18,216 Other receivables 11,844 Inventories 5,947 Current deferred tax asset, net 8,315 Prepaid rent 246 Other prepaid expenses 2,578 Total current assets 47,146 Property and equipment, net 241,646 Noncurrent deferred tax asset, net 22,201 Goodwill 4,642 Other intangibles, net 4,887 Other assets 8,413 Total assets $328,935 Liabilities and stockholders' equity Current liabilities: Accounts payable $ 17,195 Accrued compensation and benefits 23, 403 Accrued rent 20,574 Deferred rent credits 4,118 Other accrued liabilities 13,790 Gift card liability 14,637 Store closure reserve 59 Total current liabilities 93,776 Long-term debt Other liabilities 9,906 Deferred rent credits, net of current portion 33,277 Income taxes payable, net of current portion 321 Commitments and contingencies Stockholders' equity: Common stock-$0.01 par value, 80,010,000 shares authorized, 25,100,000 and 24,700,000 shares issued and outstanding at end of Year 3, and Year 2, respectively 251 Additional paid-in capital 178,563 Retained earnings 12,841 Total stockholders' equity 191,655 Total liabilities and stockholders' equity $328,935 $ 11,363 23, 301 19,487 3,845 11,115 20,740 331 90,182 22,400 7,928 32,578 9,325 247 174,100 15, 108 189,455 $ 351,868 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 $1.14. (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. % b. % Return on equity Net profit margin Inventory turnover Current ratio C. d. e. Quick ratio f. Debt-to-equity ratio Pricelearnings ratio g