The following financial statements apply to Benson Company: 2019 2018 $ 210,000 9,700 219,700 $176,700 6,300 183,000 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, 200 20,400 10,600 2,900 19,400 178,500 101,100 18,400 9,600 2,900 16,300 148,300 $ 41,200 $ 34,700 $ 4,900 2,000 35,600 100,900 3,400 146,800 106,400 20,900 $274,100 $ 6,800 2,000 31,100 94,000 2,400 136,300 106,400 0 $ 242,700 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 (48,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 39,600 15,400 55,000 65,400 120,400 $ 55,800 16, 700 72,500 66,400 138,900 114,500 39,200 153,700 $ 274,100 114,500 (10,700) 103,800 $ 242,700 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. 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 $6.12 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.) 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.) Answer is complete but not entirely correct. 2019 2018 a. b. C. d. $ $ e. f. 19.62% 0.00 % 26.81 % 0.86 7.12 times 3.20 14.21 x times 91,800 2.67 19.64 % 0.00 % 33.43 % 0.72 8.50 times 2.16 11.97 x times 63,800 1.88 0.55 $ Net margin Return on investment Return on equity Earnings per share Price-earnings ratio Book value Interest earned Working capital Current ratio Quick (acid-test) ratio Accounts receivable turnover Inventory turnover Debt to equity ratio Debt to assets ratio $ g. h. $ $ i. j. 0.77 k. 5.90 times 5.68 times I. m. 1.24 X times 0.43 X 24 % 1.08 times 0.64 X 27 % n
