The following financial statements apply to Munoz Company: 2019 2018 Revenues Net sales Other revenues $ 210,000 8,900 218,900 $175,800 5,000 180,800 Total revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses 125,400 20,200 10,500 1,600 20,000 177,700 $ 41,200 102,600 18,200 9,500 1,600 16,600 148,500 $ 32,300 Net income $ 4,400 1,900 35,900 101,000 4,100 147,300 106,700 20,000 $274,000 $ 7,900 1,900 31,200 96,000 3,100 140,100 106,700 0 $246,800 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 (45,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 38,600 15,800 54,400 65,200 119,600 $ 55,700 15,000 70, 700 66,200 136,900 113,900 40,500 154,400 $274,000 113,900 (4,000) 109,900 $ 246,800 Required Calculate the following ratios for 2018 and 2019. Since 2017 numbers are not presented, do not use averages when calculating the ratios for 2018. Instead, use the number presented on the 2018 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 2018 and 2019 were $6.05 and $4.93, 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.) 2019 2018 % % % % % % 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 9. Interest earned h. Working capital i. Current ratio 1. 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 % %
