Problem 13-23A (Algo) Ratio analysis LO 13-2, 13-3, 13-4, 13-5 The following financial statements apply to Finch Company: Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Year 2 $ 218,400 125,500 19,600 9,600 1,900 20,100 176,700 $ 41,700 $ 5,900 2,000 36,400 202,000 4,300 250, 600 106, 100 20,000 $ 376,700 $ 39,900 16,300 56.200 Year 1 $ 181,300 101,800 17,600 8,600 1,900 17,500 147,400 $ 33,900 $ 7,300 2,000 31,600 196,000 3,300 240,200 106, 100 0 $ 346,300 $ 35,200 16,800 52.000

ASAP

Problem 13-23A (Algo) Ratio analysis LO 13-2, 13-3, 13-4, 13-5 The following financial statements apply to Finch Company: Calculate the following ratios for Year 1 and Year 2. When data limitations prohibit computing averages, use year-end balances in your calculations. 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 $6.04 and $4.91, 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.) 1. Inventory turnover, (Round your answers to 2 decimal places.) n. Debt-to-equity ratio, (Round your answers to 2 decimal places.) n. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) Problem 13-23A (Algo) Ratio analysis LO 13-2, 13-3, 13-4, 13-5 The following financial statements apply to Finch Company: Calculate the following ratios for Year 1 and Year 2. When data limitations prohibit computing averages, use year-end balances in your calculations. 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 $6.04 and $4.91, 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.) 1. Inventory turnover, (Round your answers to 2 decimal places.) n. Debt-to-equity ratio, (Round your answers to 2 decimal places.) n. Debt-to-assets ratio. (Round your answers to the nearest whole percent.)