Problem 13-23A Ratio analysis LO 13-2, 13-3, 13-4, 13-5

The following financial statements apply to Baird Company:

	Year 4				Year 3
Revenues
Net sales	$	211,500			$	176,000
Other revenues		8,500				6,300
Total revenues		220,000				182,300
Expenses
Cost of goods sold		124,900				101,300
Selling expenses		20,300				18,300
General and administrative expenses		9,100				8,100
Interest expense		2,800				2,800
Income tax expense		20,300				16,200
Total expenses		177,400				146,700
Net income	$	42,600			$	35,600
Assets
Current assets
Cash	$	5,500			$	6,900
Marketable securities		1,100				1,100
Accounts receivable		36,900				30,200
Inventories		100,300				95,800
Prepaid expenses		3,300				2,300
Total current assets		147,100				136,300
Plant and equipment (net)		106,500				106,500
Intangibles		21,500				0
Total assets	$	275,100			$	242,800
Liabilities and Stockholders Equity
Liabilities
Current liabilities
Accounts payable	$	39,300			$	54,200
Other		15,000				15,800
Total current liabilities		54,300				70,000
Bonds payable		64,600				65,600
Total liabilities		118,900				135,600
Stockholders equity
Common stock (47,000 shares)		114,900				114,900
Retained earnings		41,300				(7,700	)
Total stockholders equity		156,200				107,200
Total liabilities and stockholders equity	$	275,100			$	242,800

Required Calculate the following ratios for Year 3 and Year 4. 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. 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 3 and Year 4 were $6.00 and $4.92, 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.) 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.)