Ratios from Comparative and Common-Size Data Consider the following financial statements for Waverly Company. During the current year, management obtained additional bond financing to enlarge its production facilities. The company faced higher production costs during the year for such things as fuel, materials, and freight. Because of temporary government price controls, a planned price increase on products was delayed several months. As a holder of both common and preferred stock, you decide to analyze the financial statements:

WAVERLY COMPANY Balance Sheets (Thousands of Dollars)
	Dec. 31, Current Year	Dec. 31, Prior Year
Assets
Cash and cash equivalents	$21,000	$15,000
Accounts receivable (net)	58,000	46,000
Inventory	123,000	108,000
Prepaid expenses	20,000	14,000
Plant and other assets (net)	471,000	411,000
Total Assets	$693,000	$594,000
Liabilities and Stockholders' Equity
Current liabilities	$93,000	$85,000
10% Bonds payable	228,000	163,000
9% Preferred stock, $50 Par Value	78,000	78,000
Common stock, $10 Par Value	200,000	200,000
Retained earnings	94,000	68,000
Total Liabilities and Stockholders' Equity	$693,000	$594,000

WAVERLY COMPANY Income Statements (Thousands of Dollars)
	Current Year	Prior Year
Sales revenue	$823,000	$681,000
Cost of goods sold	544,200	436,920
Gross profit on sales	278,800	244,080
Selling and administrative expenses	171,400	149,200
Income before interest expense and income taxes	107,400	94,880
Interest expense	25,500	19,000
Income before income taxes	81,900	75,880
Income tax expense	22,900	21,300
Net income	$59,000	$54,580
Other financial data (thousands of dollars)
Cash provided by operating activities	$65,200	$60,500
Preferred stock dividends	6,750	6,750

Required a. Calculate the following for each year: current ratio, quick ratio, operating-cash-flow-to-current liabilities ratio (current liabilities were $78,000,000 at January 1 of the prior year), inventory turnover (inventory was $87,000,000 at January 1 of the prior year), debt-to-equity ratio, times-interest-earned ratio, return on assets (total assets were $493,000,000 at January 1 of the prior year), and return on common stockholders' equity (common stockholders' equity was $236,000,000 at January 1 of the prior year). b. Calculate common-size percentages for each year's income statement. Round answers to two decimal places.