PEKEL CUIIPANY

Balance Sheets As of December $31$ PEKEL CUIIPANY

Balance Sheets As of December $31$Financial statements for Perez Company follow.

PEREZ COMPANY

Balance Sheets As of December $31$

Year $4$ Year $3$

Assets

Current assets

Cash $ $21,500$ $ $17,500$

Marketable securities $21,1007,100$

Accounts receivable $($net$)52,00044,000$

Inventories $137,000145,000$

Prepaid items $26,00011,000$

Total current assets $257,600224,600$

Investments $32,00025,000$

Plant $($net$)265,000250,000$

Land $29,00024,000$

Total assets $ $583,600$ $ $523,600$

Liabilities and Stockholders$$ Equity

Liabilities

Current liabilities

Notes payable $ $30,200$ $ $12,900$

Accounts payable $98,80085,000$

Salaries payable $26,00020,000$

Total current liabilities $155,000117,900$

Noncurrent liabilities

Bonds payable $150,000150,000$

Other $26,00021,000$

Total noncurrent liabilities $176,000171,000$

Total liabilities $331,000288,900$

Stockholders$$ equity

Preferred stock, $($par value $$10,5\%$ cumulative, non$-$participating; $6,000$ shares authorized and issued$)60,00060,000$

Common stock $($no par; $50,000$ shares authorized; $10,000$ shares issued$)60,00060,000$

Retained earnings $132,600114,700$

Total stockholders$$ equity $252,600234,700$

Total liabilities and stockholders$$ equity $ $583,600$ $ $523,600$

PEREZ COMPANY

Statements of Income and Retained Earnings For the Years Ended December $31$

Year $4$ Year $3$

Revenues

Sales $($net$)$ $ $340,000$ $ $320,000$

Other revenues $10,2007,200$

Total revenues $350,200327,200$

Expenses

Cost of goods sold $170,000136,000$

Selling, general, and administrative $66,00061,000$

Interest expense $11,30010,500$

Income tax expense $78,00077,000$

Total expenses $325,300284,500$

Net earnings $($net income$)24,90042,700$

Retained earnings, January $1114,70079,000$

Less: Preferred stock dividends $3,0003,000$

Common stock dividends $4,0004,000$

Retained earnings, December $31$ $ $132,600$ $ $114,700$

Required

Calculate the following ratios for Year $4$ and Year $3.$ Since Year $2$ numbers are not presented do not use averages when calculating the ratios for Year $3.$ Instead, use the number presented on the Year $3$ balance sheet.

Note: Round ratio answers to $2$ decimal places unless otherwise indicated.

Working capital.

Current ratio.

Quick ratio.

Receivables turnover $($beginning receivables at January $1,$ Year $3,$ were $$45,000).$

Average days to collect accounts receivable.

Note: Use $365$ days in a year. Round your intermediate calculations to $2$ decimal places and your final answers to the nearest whole number.

Inventory turnover $($beginning inventory at January $1,$ Year $3,$ was $$151,000).$

Number of days to sell inventory.

Note: Use $365$ days in a year. Round your intermediate calculations to $2$ decimal places and your final answers to the nearest whole number.

Debt$-$to$-$assets ratio.

Note: Round your answers to the nearest whole percent.

Debt$-$to$-$equity ratio.

Number of times interest was earned.

Plant assets to long$-$term debt.

Net margin.

Turnover of assets $($average total assets in Year $3$ is $$523,600).$

Return on investment $($average total assets in Year $3$ is $$523,600).$

Return on equity $($average stockholders' equity in Year $3$ is $$234,700).$

Earnings per share $($total shares outstanding is unchanged$).$

Book value per share of common stock.

Price$-$earnings ratio $($market price per share: Year $3,$ $$12\mathrm{.}30$; Year $4,$ $$13\mathrm{.}60).$

Note: Round your intermediate calculations and final answer to $2$ decimal places.

Dividend yield on common stock.