The following financial statements apply to Adams Company: Year 2 $ 219,100 Year 1 $ 181,800 125,400 101,700 19,400 17,400 9,900 8,900 1,000 1,000 20,300 16,300 176,000 145,300 43,100 $ 36,500 $ 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 (46,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 4,500 2,600 35,700 100, 800 4,100 147,700 106,500 20,400 $ 274,600 $ 6,700 2,600 31,700 95,400 3,100 139,500 106,500 0 $ 246,000 $ $ 39,700 16,400 56,100 65,000 121,100 34,000 15,500 49,500 66,000 115,500 114,600 38,900 153,500 $ 274,600 114,600 15,900 130, 500 $ 246,000 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 $6.13 and $4.84, 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.) 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. % % % C. % % times times times times Net margin b. Return on investment Return on equity d. Earnings per share e. Price-earnings ratio f. Book value per share of common stock g. Times interest earned h. Working capital i. Current ratio . Quick (acid-test) ratio k. Accounts receivable turnover I. Inventory turnover m. Debt-to-equity ratio Debt-to-assets ratio times times times times n. % %