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The following financial statements apply to Campbell Company: Year 2 $ 219,200 Year 1 $ 181,400 Revenues Expenses Cost of goods sold Selling expenses

 

The following financial statements apply to Campbell Company: Year 2 $ 219,200 Year 1 $ 181,400 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 (50,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 49700 Required 124,200 102,700 21,000 19,000 10,000 9,000 2,100 2,100 16,000 148,800 19,700 177,000 $ 42,200 $ 32,600 $ 5,200 1,700 35,200 $ 8,000 1,700 31,700 196,000 201,000 3,000 246,100 106,500 20,700 $ 373,300 2,000 239,400 106,500 0 $ 345,900 $ 35,600 $ 38,200 15,100 16,400 53,300 52,000 49,700 65,800 103,000 117,800 127,000 127,000 143,300 101,100 270,300 228,100 $ 373,300 $ 345,900 Calculate the following ratios for Year 1 and Year 2. When data limitations prohibit computing averages, use year-end balances in your calculations. 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 $6.10 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. (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.)

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Campbell Company Ratio Analysis a Net Margin Year 1 42200 219200 0192 or 192 Year 2 32600 181400 018... blur-text-image

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