The following financial statements apply to Munoz Company: Year 2 $ 221,400 Year 1 $ 183,000 Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense 126,000 20,700 9,100 1,700 20,100 177,600 101,600 18,700 8,100 1,700 17,500 147,600 Total expenses Net income $ 43,800 $ 35,400 $ 5,800 1,600 35,000 101,400 4,500 148,300 105, 900 21,900 $ 276,100 $ 7,800 1,600 31,900 94,400 3,500 139,200 105,900 0 $ 245,100 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 (49,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ $ 38,900 15,600 54,500 64,400 118,900 34,500 16,700 51,200 65,400 116,600 113,800 43,400 157,200 $ 276,100 113,800 14,700 128,500 $ 245, 100 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-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.) Year 2 Year 1 a. Net margin % % b. Return on investment % % C. % % d. e. Return on equity Earnings per share Price-earnings ratio Book value per share of common stock Times interest earned times times f. g. times times h. Working capital i. Current ratio times times j. Quick (acid-test) ratio k. Accounts receivable turnover 1. Inventory turnover m. Debt-to-equity ratio Debt-to-assets ratio times times n. % %