Problem 13-23A Ratio analysis LO 13-2, 13-3, 13-4, 13-5 The following financial statements apply to Campbell Company: 2019 2018 $210, 400 9,500 219,900 $176,700 6,800 183,500 125, 100 20,200 9,600 2,300 20,400 177,600 $ 42,300 101,300 18,200 8,600 2,300 16,500 146,900 $ 36,600 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 Bonds payable Total liabilities Stockholders' equity Common stock (41,000 shares) Retained earnings Total stockholders' equity $ 5,500 1,100 35,300 101,400 3,700 147,000 106,500 21,400 $274,900 $ 7,200 1,100 31,500 95,300 2,700 137,800 106,500 $244,300 $ 39,100 15,100 54,200 65,300 119,500 $ 55,100 15,300 70,400 66,300 136,700 114,200 41,200 155,400 114,200 (6,600) 107,600 Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (41,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 39, 100 15, 108 54,200 65,308 119,500 $ 55,100 15,300 70,400 66,300 136,700 114,209 41,200 155,400 $274,900 114,200 (6,600) 107,600 $244,300 Required Calculate the following ratios for 2018 and 2019. Since 2017 numbers are not presented do not use averages when calculating the ratios for 2018. Instead, use the number presented on the 2018 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 2018 and 2019 were $5.95 and $4.78, respectively). (Round your intermediate calculations and final answers to 2 decimal places.) 1. 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.) 2019 2018 a. Net margin b. Return on investment c. Return on equity % Calculate the following ratios for 2018 and 2019. Since 2017 numbers are not presented do not use averages when calculating the ratios for 2018. Instead, use the number presented on the 2018 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 2018 and 2019 were $5.95 and $478, 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.) 9. 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 1. 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.) 2019 2018 % % % % times times times times a Net margin b. Return on investment c. Return on equity d. Earnings per share e Price-eamings ratio 1. Book value 9. Interest earned h. Working capital 1. Current ratio Quick (acid-test) ratio k Accounts receivable turnover Inventory turnover m. Debt to equity ratio n. Debt to assets ratio times times times times % %
