Required Calculate the following ratios for Year 3 and Year 4. Since Year 2 numbers are not presented do not use averages when calculating the ratios for Year 3. Instead, use the number presented on the Year 3 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 3 and Year 4 were $6.09 and $4.82, 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. Exclude extraordinary income in the calculation as they cannot be expected to recur and, therefore, will not be available to satisfy future interest payments. (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.) Accounts receivable turnover. (Round your answers to 2 decimal places.) I. 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.) Year 4 Year 3 % times times times times a. Net margin b. Return on investment C. Return on equity d. Earnings per share e. Price-earnings ratio f. Book value Interest eamed h. Working capital Current ratio Quick (acid-test) ratio Accounts receivable turnover I. Inventory turnover m. Debt-to-equity ratio n. Debt-to-assets ratio times times times times The following financial statements apply to Baird Company: Year 4 Year 3 $211,200 9,000 220,200 $175,300 6,900 182,200 Revenues Net sales Other revenues Total revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses 125,000 20,600 10,800 2,900 19,500 178,800 101,600 18,600 9,800 2,900 16,300 149,200 $ 41,400 $ 33,000 $ 5,600 1,000 36,700 100, 200 3,100 146,600 106,700 21,900 $275, 200 $ 7,800 1,000 31,700 94,900 2,100 137,500 106, 700 $244,200 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 (46,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 39,200 16,300 55,500 64,200 119,700 $ 55,700 15,700 71,400 65,200 136,600 113,500 42,000 155,500 $275,200 113,500 (5,900) 107,600 $244,200