REQUIRED Calculate the following ratios for 2018 and 2017. When data limitations prohibit computing averages, use year-end balances or figures in your calculations. 1. Net margin 2. Earnings per share 3. Price-earnings ratio 12/31/2017, Share Price, $ 75.00 12/31/2018, Share Price, $ 85.00 4. Return on equity 5. Return on investment Express the formula and show numbers in the formulas to receive full credit. Two decimals for ratios and whole percentages are acceptable for reporting.

roblem 9 2018 Revenues 2017 399,000 Total revenues 485,000 Expenses Cost of goods sold 242,000 46,000 12,000 220,000 42,000 24,000 Selling expenses General and administrative expenses 9,000 36,000 331,000 Interest expense 9,000 39,000 Income tax expense Total expenses 348,000 Earnings from continuing operations 51,000 4,000 before extraordinary items 154,000 Extraordinary gain (net of income tax) Net income 55,000 154,000 Assets Current assets Cash 9,600 2,400 84,000 240,000 19,200 2,400 76,800 230,400 4,800 333,600 Marketable securities Accounts receivable Inventories 7200 343,200 252,000 48,000 643,200 Prepaid items Total current assets 252,000 Plant and equipment (net Intangibles Total assets 585,600 Liabilities and Stockholders' Equit Liabilities Current liabilities 129,600 36,000 165,600 160,800 326,400 Accounts payable 96,000 40,800 Other 136,800 158,400 295,200 Total current liabilities Bonds payable Total liabilities Stockholders' equit Common stock 276,000 276,000 shares 75,000 72,000 16,800 259,200 585,600 Retained earnings Total stockholders' equi 348,000 Total liabilities and stockholders' equit 643,200