The following financial statements apply to Baird Company: Year 2 $ 221,000 Year 1 $ 182,400 124,800 19,400 9,400 2,600 19,700 175,900 $ 45,100 102,800 17,400 8,400 2,600 17,300 148,500 $ 33,900 Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets Current asseta 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 (47,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 5,700 1,500 36,100 100,600 4,400 148,300 105.400 21.500 $ 275,200 $ 6,600 1,500 32,000 94,900 3,400 138, 400 105,400 0 $ 243,800 $ 39,600 15,200 54,700 64,800 119,500 $ 34,800 16,500 51,300 65,800 117,100 114,600 41,100 155,700 $ 275,200 114,600 12, 100 126,700 $ 243,800 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 $6.05 and $4.91, 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. 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 Cantal Common stock (47,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 114,600 41,100 155,700 $ 275,200 114,600 12,100 126,700 $ 243,800 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 $6.05 and $4.91, 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. 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 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.) L. 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 b % % 96 c. % % d times mes - Netmargin Return on investment Return on equity Earnings per share Price camings ratio Book value per share of common stock Times interest earned Working capital Current ratio Quick (acid-test) ratio Accounts receivable turnover Inventory tumover Debt-to-equity ratio Debt-to-assets ratio Umes times k mes 2 times times times m 36 %
