Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Required Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not us calculating the ratios for
Required Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not us 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 $6.01 and $4.85, respectively). calculations and final answers to 2 decimal places.) f. Book value per share of common stock. (Round your answers to 2 decimal places.) g. Times interest earned. (Round your answers to 2 decimal places.) h. Working capital. i. Current ratio. (Round your answers to 2 decimal places.) j. Quick (acid-test) ratio. (Round your answers to 2 decimal places.) k. Accounts receivable turnover. (Round your answers to 2 decimal places.) Inventory turnover. (Round your answers to 2 decimal places.) n. Debt-to-equity ratio. (Round your answers to 2 decimal places.) Debt-to-assets ratio. (Round your answers to the nearest whole percent.) Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable \begin{tabular}{|c|c|c|c|} \hline$ & \begin{tabular}{r} 5,600 \\ 1,400 \\ 35,400 \\ 101,600 \\ 3,900 \\ \end{tabular} & $ & \begin{tabular}{r} 6,400 \\ 1,400 \\ 30,100 \\ 95,700 \\ 2,900 \\ \end{tabular} \\ \hline & \begin{tabular}{r} 147,900 \\ 106,000 \\ 21,900 \\ \end{tabular} & & \begin{tabular}{r} 136,500 \\ 106,000 \\ 0 \\ \end{tabular} \\ \hline$ & 275,800 & $ & 242,500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline$ & \begin{tabular}{l} 39,100 \\ 16,800 \end{tabular} & $ & \begin{tabular}{l} 34,600 \\ 15,200 \end{tabular} \\ \hline & 55,900 & & 49,800 \\ \hline \end{tabular} Required Calculate the following ratios for Year 1 and Year 2. Since opening balance numbers are not presented do not us 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 $6.01 and $4.85, respectively). calculations and final answers to 2 decimal places.) f. Book value per share of common stock. (Round your answers to 2 decimal places.) g. Times interest earned. (Round your answers to 2 decimal places.) h. Working capital. i. Current ratio. (Round your answers to 2 decimal places.) j. Quick (acid-test) ratio. (Round your answers to 2 decimal places.) k. Accounts receivable turnover. (Round your answers to 2 decimal places.) Inventory turnover. (Round your answers to 2 decimal places.) n. Debt-to-equity ratio. (Round your answers to 2 decimal places.) Debt-to-assets ratio. (Round your answers to the nearest whole percent.) Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable \begin{tabular}{|c|c|c|c|} \hline$ & \begin{tabular}{r} 5,600 \\ 1,400 \\ 35,400 \\ 101,600 \\ 3,900 \\ \end{tabular} & $ & \begin{tabular}{r} 6,400 \\ 1,400 \\ 30,100 \\ 95,700 \\ 2,900 \\ \end{tabular} \\ \hline & \begin{tabular}{r} 147,900 \\ 106,000 \\ 21,900 \\ \end{tabular} & & \begin{tabular}{r} 136,500 \\ 106,000 \\ 0 \\ \end{tabular} \\ \hline$ & 275,800 & $ & 242,500 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|} \hline$ & \begin{tabular}{l} 39,100 \\ 16,800 \end{tabular} & $ & \begin{tabular}{l} 34,600 \\ 15,200 \end{tabular} \\ \hline & 55,900 & & 49,800 \\ \hline \end{tabular}
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started