The following financial statements apply to Fanning Company: 2019 2018 $210,300 8,300 218,600 $176,200 5,400 181,600 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 Net income 125,600 19,100 10,800 1,300 20,300 177,100 $ 41,500 102,700 17,100 9,800 1,300 16,900 147,800 $ 33,800 $ 6,000 1,400 36,800 100,000 4,900 149,100 105,300 20,700 $275, 100 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 (47,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 7,800 1,400 30, 200 95,400 3,900 138,700 105,300 0 $244,000 $ 39,000 15,400 54,400 65,900 120,300 $ 55,800 16,300 72,100 66,900 139,000 114,000 40,800 154,800 $275, 100 114,000 (9,000) 105,000 $ 244,000 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 $5.95 and $4.90, 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 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.) . 1 nces 2019 % % 2018 % * % a. Net margin b. Rotum on investment c. Return on equity d. Earnings per share Price earnings ratio 1. Book value 9 Interesteamed % times times times times e. Price-earnings ratio (market prices at the end of 2018 and 2019 were $5.95 and $4.90, respectively). ( 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 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.) 1. 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.) 2019 2018 % % % % % % times times a. Net margin b. Return on investment c. Return on equity d. Earnings per share e. Price-earnings ratio 1. Book value g. Interest earned h. Working capital i. Current ratio 1. Quick (acid-test) ratio k. Accounts receivable turnover L. Inventory turnover m. Debt to equity ratio n. Debt to assets ratio times times times times times times % % 2019 2018 Revenues Net sales Other revenues Total revenues $210,300 8,300 218,600 $ 176,200 5,400 181,600 Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses 125,600 19, 100 10, 800 1,300 20,300 177, 100 102, 700 17,100 9,800 1,300 16,900 147,800 $ 33,800 Net income $ 41,500 6,000 1,400 36,800 100,000 4,900 149,100 105,300 20,700 $275, 100 7,800 1,400 30, 200 95,400 3,900 138, 700 105,300 0 $244,000 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 (47,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 39,000 157, 400 547 400 65,900 120,300 $ 55,800 16,300 72,100 66,900 139,000 114,000 40,800 154,800 $275,100 114,000 (9,000) 105,000 $244,000 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 $5.95 and $4.90, 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. 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.) 1. 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.) 2019 2018 % % % % % % times Rimes times times a. Net margin b. Return on investment c. Return on equity d. Earnings per share e. Price-earnings ratio f. Book value g. Interest earned h. Working capital i. Current ratio i. Quick (acid-test) ratio k. Accounts receivable turnover 1. Inventory turnover m. Debt to equity ratio n. Debt to assets ratio times times times times % %