Ratios Compared with Industry Averages Because you own the common stock of Phantom Corporation, a paper manufacturer, you decide to analyze the firm's performance for the most recent year. The following data are taken from the firm's latest annual report: December 31 Current Year Prior Year Quick assets Inventory and prepaid expenses Other assets Total Assets Current liabilities 10% Bonds payable 8% Preferred stock, $100 par value Common stock, $10 par value Retained earnings Total Liabilities and Stockholders' Equity $700,000 $552,000 372,000 312,000 4,788,000 4,200,000 $5,860,000 $5,064,000 $724,000 $564,000 1,440,000 1,440,000 480,000 480,000 2,700,000 2,160,000 516,000 420,000 $5,860,000 $5,064,000 For the current year, net sales amount to $11,280,000, net income is $575,000, and preferred stock dividends paid are $42,000. Calculate the following ratios for the current year: 1. Profit margin Round answer to one decimal place (ex: 0.144555 = 14.5%). % 2. Return on assets Round answer to one decimal place (ex: 0.144555 = 14.5%). % 3. Return on common stockholders' equity Round answer to one decimal place (ex: 0.144555 = 14.5%). % 4. Quick ratio Round answer to two decimal places (ex: 1.34543 = 1.35). 5. Current ratio Round answer to two decimal places (ex: 1.34543 = 1.35). 6. Debt-to-equity ratio Round answer to two decimal places (ex: 1.34543 = 1.35). Check