The following financial statements apply to Solomon Company: Year 4 Year 3 $210, 700 8,300 219,000 $176,300 5,100 181,400 125,300 19,800 10,400 1,300 19,800 176,600 $ 42,400 102,800 17,800 9,400 1,300 17,500 148,800 $ 32,600 Revenues Net sales Other revenues Total 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 $ 5,600 $ 6,200 2,700 2,700 36,900 31, 200 101,100 95,700 4,300 3,300 150, 600139, 100 105,600 105,600 21,400 $277,600 $244,700 $ 38,800 $ 54,700 15,000 16,600 53,80071,300 4 34 $ $ 5,600 2,700 36,900 101,100 4,300 150, 600 105,600 21,400 $277,600 6, 200 2,700 31,200 95,700 3.300 139, 100 105,600 $244,700 et 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 Bonda payable Total liabilities Stockholders' equity Common stock (43,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 38,800 15,000 53,800 64,900 118,700 $ 54,700 16,600 71,300 65,900 137,200 114,100 44,800 158,900 $277,600 114,100 6.600) 107,500 $244,700 Required Calculate the following ratios for Year 3 and Year 4. Since Year 2 numbers are not presented do not use averages when calculating the ratios for Year 3. Instead, use the number presented on the Year 3 balance sheet. a. Net margin. (Round your answers to 2 decimal places.) 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.) 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 4 Year 3 times mes times times a. Net margin b. Return on investment C. Retum on equity d. Earnings per share e. Price-earnings ratio f. Book value g. Interest eamed h. Working capital Current ratio Quick (acid-test) ratio Accounts receivable turnover Inventory tumover m. Debt-to-equity ratio n. Debt-to-assets ratio times times