Problem 13-23A Ratio analysis LO 13-2, 13-3, 13-4, 13-5 The following financial statements apply to Benson Company: Year 4 Year 3 $210,900 9,100 220,000 $175,900 5,800 181,700 125,000 20,000 10,300 1,400 20,800 177,500 $ 42,500 102,700 18,000 9,300 1,400 17,600 149,000 $ 32,700 Revenues Net sales Other revenues Total 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 $ 4,400 2,600 36,100 100,700 3,300 147,100 106,500 21,300 $274,900 $ 7,500 2,600 30,800 94,600 2,300 137,800 106,500 $244,300 $ 38,400 16,400 54 888 $ 54,800 15,100 69 900 Prev 2 of 2 E Ne 106,500 21,300 $274,900 106,500 $244,300 0 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 (49,600 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 38,400 16,400 54,800 64,600 119,400 $ 54,800 15,180 69,900 65,600 135,500 114,800 114,800 40,700 (6,000) 155,500 108,800 $274,900 $244,300 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 $6.09 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. 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.) Dov