Karl Company Income Statement For Year Ended Year 2 Year 2 Year 1 Revenues 436,000 360,000 Expenses Cost of goods sold 252,000 206,000 Selling expenses 42,000 38,000 General and administrative expenses 22,000 20,000 Interest expense 6,000 6,000 Income tax expense 42,000 36,000 Total Expenses 364,000 306,000 Net Income 72,000 54,000Karl Company Balance Sheet As of EOY Year 2 Year 2 Year 1 Assets Current assets 74,000 84,000 Marketable Securities 2,000 2,000 Accounts Receivable 70,000 64,000 Inventories 200,000 192,000 Prepaid Expenses 6,000 4,000 Total current assets 352,000 346,000 Plant and equipment (net) 210,000 210,000 Intangibles 40,000 Total long-term assets 250,000 210,000 Total assets 602,000 556,000 Liabilities and Stockholder's Equity Liabilities Current liabilities Accounts Payable 80,000 108,000 Other 34,000 30,000 Total current liabilities 114,000 138,000 Long-term liabilities Bonds Payable 132,000 134,000 Total long-term liabilities 132,000 134,000 Total liabilities 246,000 272,000 Stockholders' Equity Common Stock (100,000 shares) 230,000 230,000 Retained Earnings 126,000 54,000 Total Stockholders' equity 356,000 284,000 Total liabilities and stockholders' equity 602,000 556,000Required: Calculate the following ratios for Year 1 and Year 2. When data limitations prohibit computing averages, use year-end balances in your calculations. Round computations to two decimal points. Year 2 Year 1 Requirement Ratio Required Ratio Ratio a net margin b return on investment C return on equity d earnings per share price-earnings ratio (market prices at the end of Year 1 and Year 2 were $11.88 and $9.54) book value per share of common stock time interest earned working capital current ratio quick ratio k accounts receivable turnover inventory turnover m debt-to-equity ratio debt-to-assets ratio O gross margin