The following financial statements apply to Campbell Company:

 

	Year 2				Year 1
Revenues	$	221,300			$	181,000
Expenses
Cost of goods sold		125,100				101,200
Selling expenses		20,700				18,700
General and administrative expenses		10,700				9,700
Interest expense		2,500				2,500
Income tax expense		20,900				17,500
Total expenses		179,900				149,600
Net income	$	41,400			$	31,400
Assets
Current assets
Cash	$	4,800			$	7,900
Marketable securities		2,500				2,500
Accounts receivable		36,700				31,100
Inventories		100,100				94,400
Prepaid expenses		3,300				2,300
Total current assets		147,400				138,200
Plant and equipment (net)		106,000				106,000
Intangibles		21,100				0
Total assets	$	274,500			$	244,200
Liabilities and Stockholders’ Equity
Liabilities
Current liabilities
Accounts payable	$	39,400			$	34,400
Other		15,600				16,900
Total current liabilities		55,000				51,300
Bonds payable		64,700				65,700
Total liabilities		119,700				117,000
Stockholders’ equity
Common stock (45,000 shares)		113,400				113,400
Retained earnings		41,400				13,800
Total stockholders’ equity		154,800				127,200
Total liabilities and stockholders’ equity	$	274,500			$	244,200

 

Required
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 $6.03 and $4.89, 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.)
l. 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.)

		Year 2		Year 1
a.	Net margin	18.71	%	17.35	%
b.	Return on investment		%		%
c.	Return on equity		%		%
d.	Earnings per share
e.	Price-earnings ratio		times		times
f.	Book value per share of common stock
g.	Times interest earned		times		times
h.	Working capital
i.	Current ratio
j.	Quick (acid-test) ratio
k.	Accounts receivable turnover		times		times
l.	Inventory turnover		times		times
m.	Debt-to-equity ratio
n.	Debt-to-assets ratio		%		%