The following financial statements apply to Adams Company. Year 2 Year 1 Revenues $ 219,700 $ 182,309 Expenses Cost of goods sold 124,700 101, 600 Selling expenses 20,409 18,400 General and administrative expenses 10, 209 9,200 Interest expense 1, 500 1,500 Income tax expense 20,360 16,800 Total expenses 177, 160 147,509 Net income $ 42,600 $ 34,809 Assets Current assets Cash $ 4,490 6,009 Marketable securities 1, 600 1, 600 Accounts receivable 35, 600 30,090 Inventories 101, 600 95,900 Prepaid expenses 3,900 2,909 Total current assets 147, 109 136,409 Plant and equipment (net) 105, 160 105, 109 Intangibles 21, 800 Total assets $ 274,000 $ 241,560 Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable $ 38, 769 $ 34,500 Other 15, 609 16,700 Total current liabilities 54,300 51, 209 Bonds payable 64, 400 65,480 Total liabilities 118,700 116, 600 Stockholders' equity Common stock (48, 080 shares) 114, 306 114,360 Retained earnings 41, 906 10,600 Total stockholders' equity 155, 309 124,909 Total liabilities and stockholders' equity $ 274,000 $ 241,500Required 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 $6.06 and $4.90, 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.) 9. Times Interest earned. (Round your answers to 2 decimal places.) h. Working capital. 1. 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.) 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 2 Year 1 a. Net margin 16.51 % 15.00 % b Return on investment 12.44 % 9.71% C. Return on equity 22.50 % 19.01 % d. Earnings per share S 0.72 5 0.54 e Price-earnings ratio 1,000.00 times 1,000.00 times Book value per share of common stock Times interest earned times times h. Working capital Current ratio Quick (acid-test) ratio K Accounts receivable turnover times times Inventory turnover times times m. Debt-to-equity ratio n. Debt-to-assets ratio