Problem 13-23A (Algo) Ratio analysis LO 13-2, 13-3, 13-4, 13-5 The following financial statements apply to Vernon Company: Year 2 $219,500 Year 11 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 125,700 20,500 9,000 $181,100) 102,100 18,500 8,000 1,400 1,400 19,700 16,200 176,300 146,200 $ 43,200 $ 34,900 $ 5,300 $ 7,600 2,700 2,700 35,900 30,700 Inventories Prepaid expenses Total current assets t 100,300 96,000 Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities. Accounts payable Other Total current liabilities. Bonds payable Total liabilities Stockholders' equity Common stock (45,000 shares) Retained earnings Total stockholders' equity 4,600 3,600 148,800 106,300 140,600 106,300 20,000 0 $275,100 $ 246,900 38,300 $ 34,700 16,100 16,600 54,400 51,300 64,500 65,500 118,900 116,800 113,800 113,000 42,400 156,200 16,300 130,100 Total liabilities and stockholders' equity $ 275,100 $ 246,900 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 $6.01 and $4.97, 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. Exclude extraordinary income in the calculation as they cannot be expected to recur and, therefore, will not be available to satisfy future interest payments. (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.) 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.)