The following financial statements apply to Cowboy Ice Cream Company Year 2 $ 220,200 Year 1 $ 181,700 126,000 19,200 9,200 1,200 20,800 176,400 102,600 17,200 8,200 1,200 17,400 146,600 35, 100 $ 43,800 $ $ 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 5,400 2,200 35,800 101,600 4,700 149,700 106,500 21,500 $ 277,700 6,600 2,200 31,800 95, 100 3,700 139,400 106,500 $ 245,900 $ 38,500 15,800 54,300 65,200 34,200 15,300 49,500 66,200 65,200 119,500 66,200 115.700 MULLER Bonds payable Total liabilities Stockholders' equity Comon stock (41,000 shares) Retained earnings Total stockholders' equity Total Habilities and stockholders' equity 113.800 44.400 150,200 $ 277,700 113,800 16,400 130,200 5 245,900 Required Calculate the following ratios for Year 1 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 o. 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. Times interest earned (Round your answers to 2 decimal places) e. Working capital f. Current ratio (Round your answers to 2 decimal places.) 9. 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.) Year 1 a % 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 i. times j k. % 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. 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.) Year 1 % a b. C % % times d. 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 i. times j %
