The following financial statements apply to Fanning Company: Year 4 Year 3 Revenues Net sales $211,900 $176, 100 Other revenues 9, 100 6,700 Total revenues 221,000 182,800 Expenses Cost of goods sold 124,200 102,200 Selling expenses 20,100 18, 100 General and administrative 9,800 8,800 expenses Interest expense 2,000 2,000 Income tax expense 19,900 17,100 Total expenses 176,000 148, 200 Net income $ 45,000 $ 34,600 Assets Current assets Cash $ 4,800 $ 6,800 Marketable securities 2,700 2,700 Accounts receivable 36,900 31,400 Inventories 101,300 94,900 Prepaid expenses 3,800 2,800 Total current assets 149,500 138,600 Plant and equipment (net) 105,500 105,500 Intangibles 20,700 Total assets $275,700 $244,100 Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable $ 38,100 $ 54,600 Other 15,000 16,400 Total current liabilities 53, 100 71,800 Bonds payable 65,000 66,000 Total liabilities 118,100 137,000 Stockholders' equity Common stock (47,600 shares) 113,300 113,300 Retained earnings 44,300 (6,200) Total stockholders' equity 157, 600 107, 100 Total liabilities and stockholders' equity $275,700 $244,100 Required Calculate the following ratios for Year 3 and Year 4. Since Year 2 numbers are not presented do not use averages when calculating the ratios for Year 3. Instead, use the number presented on the Year 3 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-earings ratio (market prices at the end of Year 3 and Year 4 were $5.98 and $4.91, 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.) Year 4 % 1 % % Year 3 % % 1% % times times times times a. Net margin b. Return on investment C. Return on equity d. Earnings per share e. Price-earnings ratio f. Book value Ig. Interest earned h. Working capital i. Current ratio i. Quick (acid-test) ratio k. Accounts receivable turnover I. Inventory turnover m. Debt-to-equity ratio n. Debt-to-assets ratio times times times times % %