Ratios Compared with Industry Averages Because you own the common stock of Jacob 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: 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 Dec 31, 2019 Dec 31, 2018 $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 2019, net sales amount to $12,500,000, net income is $550,000, and preferred stock dividends paid are $50,000. Required Calculate the following ratios for 2019. Round answers to two decimal places. 1. Return on sales 5.1 X % 2. Return on assets 10.53 * % 3. Return on common stockholders' equity 18.39 * % 4. Quick ratio 0.97 5. Current ratio 1.5 6. Debt-to-equity ratio 0.59 Ratios Compared with Industry Averages Because you own the common stock of Jacob 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: 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 Dec 31, 2019 Dec 31, 2018 $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 2019, net sales amount to $12,500,000, net income is $550,000, and preferred stock dividends paid are $50,000. Required Calculate the following ratios for 2019. Round answers to two decimal places. 1. Return on sales 5.1 X % 2. Return on assets 10.53 * % 3. Return on common stockholders' equity 18.39 * % 4. Quick ratio 0.97 5. Current ratio 1.5 6. Debt-to-equity ratio 0.59