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The following financial statements apply to Finch Company: Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax
The following financial statements apply to Finch Company: 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 Year 2 $ 219,600 $ $ 125,000 20,100 9,200 2,600 20,600 177,500 42,100 $ 4,100 2,100 36,400 100, 200 4,000 39,300 15,700 Year 1 $ 181,100 55,000 64,300 $ $ 101,400 18,100 8,200 2,600 17,800 148, 100 33,000 146,800 106,900 20,800 $ 274,500 $ 243,700 6,300 2,100 30,600 94,800 3,000 136,800 106,900 0 $ 35,300 15,400 50,700 65,300 Total liabilities Stockholders' equity Common stock (46,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 119,300 114,000 41,200 155,200 $ 274,500 116,000 114,000 13,700 127,700 $ 243,700 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.) 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 $5.95 and $4.95, 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. (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.)
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