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The following financial statements apply to Fanning Company: Year 2 $ 219,400 Year 1 $ 181,700 Revenues Expenses Cost of goods sold Selling expenses
The following financial statements apply to Fanning Company: Year 2 $ 219,400 Year 1 $ 181,700 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 (40,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 124,300 101,400 20,000 18,000 10,000 9,000 1,300 1,300 16,800 146,500 20,400 176,000 $ 43,400 $ 35,200 $ 5,200 $ 7,600 1,600 1,600 36,000 30,100 100,200 95,500 4,600 3,600 147,600 138,400 105,500 105,500 22,000 $ 275,100 $ 243,900 $ 39,100 $ 35,400 15,800 16,700 54,900 52,100 64,300 65,300 119,200 117,400 114,300 114,300 41,600 155,900 12,200 126,500 $ 275,100 $ 243,900 Required Calculate the following ratios for Year 1 and Year 2. 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.
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