The following financial statements apply to Robin Company. 2015 2014 Revenues Net sales Other revenues $210,300 9,300 $176,800 5,900 Total revenues 219,600 182,700 Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense 125,600 20,300 10,300 2,700 19,300 102,400 18,300 9,300 2.700 16,200 Total expenses 178,200 148,900 Earnings from continuing operations before extraordinary items Extraordinary gain (net of $2,700 tax) 33,800 41,400 2,900 $ 44,300 Net income $ 33,800 $ Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses $ 5,800 1,300 36,500 101,200 5,000 6,600 1,300 31 700 95,600 4,000 Total current assets Plant and equipment (net) Intangibles 149,800 106,800 21,200 139,200 106,800 Total assets $277,800 $246,000 Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other $ 38,000 16,500 $ 54,200 15,200 Total current liabilities Bonds payable 54,500 65,800 69,400 66,800 Total liabilities 120,300 136,200 Stockholders' equity Common stock (41,000 shares) Retained earnings 113,900 43,600 113,900 (4,100) Total stockholders' equity 157,500 $277,800 109,800 $246,000 Total liabilities and stockholders' equity Required Calculate the following ratios for 2014 and 2015. When data limitations prohibit computing averages, use year-end balances in your calculations. a. Net margin. (Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).) 2015 ( 21.07 % 2014 19.12 % Net margin b. Return on investment. (Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).) 2015 2014 13.74% Return on investment % C. Return on equity. (Round your answers to 2 decimal places. (i.e., .2345 should be entered as 23.45).) 2015 2014 30.78 % Return on equity % d. Earnings per share. (Round your answers to 2 decimal places.) 2015 2014 $ 1.087 S 0.82 Earnings per share e. Price-earnings ratio (market prices at the end of 2014 and 2015 were $5.98 and $4.91, respectively). (Round intermediate calculations and final answers to 2 decimal places.) 2015 times 2014 times Price-earnings ratio f. Book value per share of common stock. (Round your answers to 2 decimal places.) 2014 2015 Book value 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 place.) 2014 2015 times Interest earned times h. Working capital. 2015 2014 Working capital i. Current ratio. (Round your answers to 2 decimal places.) 2015 2014 Current ratio . Quick (acid-test) ratio. (Round your answers to 2 decimal places.) 2015 2014 Quick (acid-test) ratio k. Accounts receivable turnover (Round your answers to 2 decimal places.) 2015 times 2014 times Accounts receivable turnover 1. Inventory turnover. (Round your answers to 2 decimal places.) 2015 times 2014 times Inventory turnover m. Debt to equity ratio. (Round your answers to 2 decimal places.) 2015 2014 Debt to equity ratio n. Debt to assets ratio. (Round final answers to the nearest whole percent.) 2015 2014 Debt to assets ratio % %
