The following financial statements apply to Baird Company:
The following financial statements apply to Baird Company: 2019 Revenues Net sales Other revenues $210,700 $176,500 5,800 182,300 8,300 219,000 Total revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense 125,600 20,500 9,800 1,100 20,200 177,200 102,900 18,500 8,800 1,100 18,000 149,300 Total expenses Net income Assets Current assets $ 41,800 33,000 Cash Marketable securities Accounts receivable Inventories Prepaid expenses $ 5,200 $7,400 2,100 31,800 96,000 3,100 140,400 105,600 2,100 36,800 100,300 4,100 148,500 105,600 20,200 Total current assets Plant and equipment (net) Intangibles Total assets Liabilities and Stockholders' Equity Liabilities $274,300 $246,000 Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities $ 38,500 55,000 15,900 70,900 66,100 137,000 15,300 53,800 65,100 118,900 Stockholders'equity Common stock (45,000 shares) Retained earnings 114,300 41,100 155, 400 114,300 (5,300) 109,000 $274,300 $246,000 Total stockholders' equity Total 1iabilities and stockholders' equity Required Calculate the following ratios for 2018 and 2019. Since 2017 numbers are not presented do not use averages when calculating the ratios for 2018. Instead, use the number presented on the 2018 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 2018 and 2019 were $6.03 and $4.77, 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.) 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.) 2019 2018 a. Net margin b. Return on investment C. Return on equity d. Earnings per share e. Price-earnings ratio f. Book value g. Interest earned h. Working capital i. Current ratio j. Quick (acid-test) ratio k. Accounts receivable turnover I. Inventory turnover m. Debt to equity ratio n. Debt to assets ratio times times times times imes imes times times Answer is complete but not entirely correct. 19.84 | % 15.2 % 26.9 % Net margin Return on investment r share Price-earnings ratio 8.26times e. 49.82 times imes $ 94,700 s 69,500 5.73 times 5.55times 1.25 x times times urnover Debt to equity ratio Debt to assets ratio m
