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The following financial statements apply to Solomon Company: Year 2 Year 1 Revenues $ 219,700 $ 181,200 Expenses Cost of goods sold 125,100 102,400 Selling

The following financial statements apply to Solomon Company:

Year 2 Year 1
Revenues $ 219,700 $ 181,200
Expenses
Cost of goods sold 125,100 102,400
Selling expenses 19,100 17,100
General and administrative expenses 9,600 8,600
Interest expense 2,700 2,700
Income tax expense 19,500 17,500
Total expenses 176,000 148,300
Net income $ 43,700 $ 32,900
Assets
Current assets
Cash $ 4,300 $ 6,800
Marketable securities 2,600 2,600
Accounts receivable 36,800 31,900
Inventories 201,000 197,000
Prepaid expenses 3,500 2,500
Total current assets 248,200 240,800
Plant and equipment (net) 105,100 105,100
Intangibles 20,500 0
Total assets $ 373,800 $ 345,900
Liabilities and Stockholders Equity
Liabilities
Current liabilities
Accounts payable $ 38,000 $ 34,900
Other 16,500 16,700
Total current liabilities 54,500 51,600
Bonds payable 46,800 65,500
Total liabilities 101,300 117,100
Stockholders equity
Common stock (49,000 shares) 126,000 126,000
Retained earnings 146,500 102,800
Total stockholders equity 272,500 228,800
Total liabilities and stockholders equity $ 373,800 $ 345,900

Calculate the following ratios for Year 1 and Year 2. When data limitations prohibit computing averages, use year-end balances in your calculations.

  1. Net margin. (Round your answers to 2 decimal places.)
  2. Return on investment. (Round your answers to 2 decimal places.)
  3. Return on equity. (Round your answers to 2 decimal places.)
  4. Earnings per share. (Round your answers to 2 decimal places.)
  5. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $5.96 and $4.84, respectively). (Round your intermediate calculations and final answers to 2 decimal places.)
  6. Book value per share of common stock. (Round your answers to 2 decimal places.)
  7. Times interest earned. (Round your answers to 2 decimal places.)
  8. Working capital.
  9. Current ratio. (Round your answers to 2 decimal places.)
  10. Quick (acid-test) ratio. (Round your answers to 2 decimal places.)
  11. Accounts receivable turnover. (Round your answers to 2 decimal places.)
  12. Inventory turnover. (Round your answers to 2 decimal places.)
  13. Debt-to-equity ratio. (Round your answers to 2 decimal places.)
  14. Debt-to-assets ratio. (Round your answers to the nearest whole percent.

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