Required Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not use averages when calculating the ratios for Year 1. Instead, use the number presented on the Year 1 balance sheet. a. Net margin. (Round your answers to 2 decimal places.) b. Return on investment. (Round your answers to 2 decimal places.) c. Return on equity. (Round your answers to 2 decimal places.) d. Earnings per share. (Round your answers to 2 decimal places.) e. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $5.96 and $4.86, respectively). (Round your intermediate calculations and final answers to 2 decimal places.) f. Book value per share of common stock. (Round your answers to 2 decimal places.) g. Times interest earned. (Round your answers to 2 decimal places.) h. Working capital. i. Current ratio. (Round your answers to 2 decimal places.) j. Quick (acid-test) ratio. (Round your answers to 2 decimal places.) k. Accounts receivable turnover. (Round your answers to 2 decimal places.) l. Inventory turnover. (Round your answers to 2 decimal places.) m. Debt-to-equity ratio. (Round your answers to 2 decimal places.) n. Debt-to-assets ratio. (Round your answers to the nearest whole percent.)

The following financial statements apply to Munoz Company: Year 2 $ 219,300 Year 1 $ 182,200 124,100 20,000 10,600 2,000 19,500 176,200 $ 43,100 102,900 18,000 9,600 2,000 16,100 148,600 $ 33,600 $ Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (42,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 5,200 1,900 35,500 101,100 4,900 148,600 106,000 20,100 $ 274,700 $ 6,400 1,900 31,000 94,200 3,900 137,400 106,000 0 $ 243,400 $ 38,700 16,200 54,900 65,300 120, 200 $ 34,700 16,200 50,900 66,300 117,200 113,000 41,500 154,500 $ 274,700 113,000 13,200 126,200 $ 243,400 The following financial statements apply to Munoz Company: Year 2 $ 219,300 Year 1 $ 182,200 124,100 20,000 10,600 2,000 19,500 176,200 $ 43,100 102,900 18,000 9,600 2,000 16,100 148,600 $ 33,600 $ Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (42,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 5,200 1,900 35,500 101,100 4,900 148,600 106,000 20,100 $ 274,700 $ 6,400 1,900 31,000 94,200 3,900 137,400 106,000 0 $ 243,400 $ 38,700 16,200 54,900 65,300 120, 200 $ 34,700 16,200 50,900 66,300 117,200 113,000 41,500 154,500 $ 274,700 113,000 13,200 126,200 $ 243,400