The following financial statements apply to Fanning Company: Year 2 $ 219,000 Year 1 $ 181,000 125,100 20,500 10,600 1,300 19,300 176,800 42,200 101,900 18,500 9,600 1,300 16,100 147,400 33,600 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 $5.96 and $4.87, 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. 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.) $ $ $ $ 5,000 2,800 36,500 100,500 6,800 2,800 31,500 94,900 3,300 139,300 106,800 a Year 2 Year r1 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 (47,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 4,300 a % 149,100 106,800 21,400 $ 277,300 b. % % C. $ 246,100 % % d. e. times times $ $ f. g. times times 39,100 16,800 55,900 65,700 121,600 35,700 15,900 51,600 66,700 118,300 Net margin Return on investment Return on equity Earnings per share Price-earnings ratio Book value per share of common stock Times interest earned Working capital Current ratio Quick (acid-test) ratio Accounts receivable turnover Inventory turnover Debt-to-equity ratio Debt-to-assets ratio h. i. i. k times times 113,500 42,200 155,700 $ 277,300 113,500 14,300 127,800 $ 246,100 times times m. n. % % 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. 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.)
