The following financial statements apply to Cowboy Ice Cream Company Year 2 $ 218,900 Year 1 $ 181,880 125,800 19, 280 9,5ee 2,600 20.189 177,200 41,789 101,200 17,209 8,500 2,600 16,800 146, 30e 35,500 $ $ 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 (47,eee shares) Retained earnings Total stockholders equity Total liabilities and stockholders' equity $ 5,000 3,000 35,600 101,200 4,3ee 149,109 105,5ee 20,600 $ 276,200 $ 6,600 3,000 30,180 95,700 3,300 138,700 186,500 @ $ 245, 200 $ $ 39,300 16,000 55,300 65.900 121,200 34,480 15,200 49,689 66.980 116,500 114,800 40,200 155,000 $ 276,200 114,800 13,900 128,700 $ 245,200 Required Calculate the following ratios for Year 2 a. Net margin (Round your answers to 2 decimal pieces.) b. Return on investment (Round your answers to 2 decimal places.) c. Return on equity. (Round your answers to 2 decimal places.) d. Times interest earned (Round your answers to 2 decimal places.) e. Working capital 1. Current ratio (Round your answers to 2 decimal places) 9. Quick facic test ratio (Round your answers to 2 decimal places.) Common stock (47,000 shares) Retained earnings Total stockholders equity Total liabilities and stockholdersequity 114,800 40,200 155,000 $ 276,200 114,80 13,99 128,70 $ 245,208 Required Calculate the following ratios for Year 2 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 yo answers to 2 decimal places.) d. Times interest earned. (Round your answers to 2 decimal places.) e. Working capital. f. Current ratio. (Round your answers to 2 decimal places.) g. Quick (acid-test) ratio. (Round your answers to 2 decimal places.) h. Accounts receivable turnover. (Round your answers to 2 decimal places.) i. Inventory turnover. (Round your answers to 2 decimal places.) j. Debt-to-equity ratio. (Round your answers to 2 decimal places.) k. Debt-to-assets ratio. (Round your answers to the nearest whole percent.) a Year 2 % % b C % d times e f Net margin Return on investment Return on equity Times interest earned Working capital Current ratio Quick (acid-test) ratio Accounts receivable turnover Inventory turnover Debt-to-equity ratio Debt-to-assets ratio 9 h times times
