Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help with Year 2 b,c, e, i, j, k, l, n and year 1 e, k, m, n The following financial statements apply to

Need help with Year 2 b,c, e, i, j, k, l, n and year 1 e, k, m, n

image text in transcribedimage text in transcribedimage text in transcribed The following financial statements apply to Rooney Company: "seyunen Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1 . Instead, use the number presented on the Year 1 balance sheet. Calculate the following ratios for Year 1 and Year 2 . Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. a. Net margin. (Round your answers to 2 decimal places.) b. Return on investment. (Round your answers to 2 decimal places.) c. Return on equity. (Round your answers to 2 decimal places.) d. Earnings per share. (Round your answers to 2 decimal places.) e. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $6.10 and $4.78, respectively). (Round your intermediate calculations and final answers to 2 decimal places.) f. Book value per share of common stock. (Round your answers to 2 decimal places.) g. Times interest earned. (Round your answers to 2 decimal places.) h. Working capital. i. Current ratio. (Round your answers to 2 decimal places.) j. Quick (acid-test) ratio. (Round your answers to 2 decimal places.) k. Accounts receivable turnover. (Round your answers to 2 decimal places.) I. Inventory turnover. (Round your answers to 2 decimal places.) m. Debt-to-equity ratio. (Round your answers to 2 decimal places.) n. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) \begin{tabular}{|c|c|c|c|c|c|c|c|} \hline \multicolumn{8}{|c|}{ Answer is not complete. } \\ \hline \multirow[b]{2}{*}{ a. } & \multirow[b]{2}{*}{ Net margin } & \multicolumn{3}{|c|}{ Year 2} & \multicolumn{3}{|c|}{ Year 1} \\ \hline & & & 18.81 & % & & 19.21 & % \\ \hline b. & Return on investment & & 35.94 & % & & 14.38 & % \\ \hline c. & Return on equity & & 26.76 & % & & 27.17 & % \\ \hline d. & Earnings per share & $ & 0.90 & & $ & 0.76 & \\ \hline e. & Price-earnings ratio & & & times & & & times \\ \hline f. & Book value per share of common stock & $ & 3.35 & & $ & 2.80 & \\ \hline g. & Times interest earned & & 21.47 & times & & 18.17 & times \\ \hline h. & Working capital & $ & 91,200 & & $ & 88,000 & \\ \hline i. & Current ratio & & 1.22 & & & 2.78 & \\ \hline j. & Quick (acid-test) ratio & & 0.39 & & & 0.80 & \\ \hline k. & Accounts receivable turnover & & 4.31 & times & & 3.59 & times \\ \hline I. & Inventory turnover & & 0.32 & times & & 1.07 & times \\ \hline m. & Debt-to-equity ratio & & 0.78 & & & 0.51 & \\ \hline n. & Debt-to-assets ratio & & 0x & % & & & % \\ \hline \end{tabular}

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting For Beginners

Authors: Kokab Rahman

1st Edition

149479294X, 978-1494792947

More Books

Students also viewed these Accounting questions

Question

Describe how organizational members recognize the need for change.

Answered: 1 week ago