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Ratios from Comparative and Common - Size Data Consider the following financial statements for Vega Company. During the current year, management obtained additional bond financing

Ratios from Comparative and Common-Size Data
Consider the following financial statements for Vega Company. During the current year, management obtained additional bond financing to enlarge its production facilities. The plant addition produced a new high-margin product, which is supposed to improve the average rate of gross profit and return on sales.
As a potential investor, you decide to analyze the financial statements:
VEGA COMPANY
Balance Sheets
(Thousands of Dollars)
Dec. 31, Current Year Dec. 31, Prior Year
Assets
Cash $21,000 $16,100
Accounts receivable (net)39,00021,400
Inventory 105,00072,000
Prepaid expenses 1,5003,000
Plant and other assets (net)463,500427,500
Total Assets $630,000 $540,000
Liabilities and Stockholders Equity
Current liabilities $76,000 $45,000
9% Bonds payable 187,500150,000
8% Preferred stock, $50 Par Value 60,00060,000
Common stock, $10 Par Value 225,000225,000
Retained earnings 81,50060,000
Total Liabilities and Stockholders Equity $630,000 $540,000
VEGA COMPANY
Income Statements
(Thousands of Dollars)
Current Year Prior Year
Sales revenue $840,000 $697,500
Cost of goods sold 552,000474,000
Gross profit on sales 288,000223,500
Selling and administrative expenses 231,000174,000
Income before interest expense and income taxes 57,00049,500
Interest expense 16,80013,500
Income before income taxes 40,20036,000
Income tax expense 14,10012,600
Net income $26,100 $23,400
Other financial data (thousands of dollars)
Cash provided by operating activities $30,000 $25,000
Preferred stock dividends 4,8004,800
Required
a. Calculate the following for each year: current ratio, quick ratio, operating-cash-flow-to-current liabilities ratio (current liabilities were $42 million at January 1 of the prior year), inventory turnover (inventory was $68 million at January 1 of the prior year), debt-to-equity ratio, times-interest-earned ratio, return on assets (total assets were $472 million at January 1 of the prior year), and return on common stockholders equity (common stockholders equity was $266 million at January 1 of the prior year).
b. Calculate commonsize percentage for each years income statement.
Round answers to two decimal places.

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