The following financial statements apply to Karl Company: Year 2 436,800 Year i 360, eae 252,800 42,899 22,800 6,690 42,800 364,000 $ 72,800 286,800 38, eee 20, cee 6,800 36,800 386, eee $ 54, eee 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 (100,eee shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 74,800 2,690 70,000 200,000 6, Bee 352,800 210,000 40, eae $602, 60e $ 84,800 2,690 64,800 192,00 4.ee 346, eae 210, ee $556,00 $ 80, ese 34, eee 114,690 132,690 246,000 $108,00 30, eee 138, eee 134,000 272, eae 230,000 126, eae 356,00 $602, eae 230, eae 54,800 284,690 $556,600 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.) d. Earnings per share. (Round your answers to 2 decimal places.) e. Price-eamings ratio (market prices at the end of Year 1 and Year 2 were $11.88 and $9.54, 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. (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.) 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 2 Year 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 per share of common stock 9. Times interest earned h. Working capital i. Current ratio j. 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 % %
