The following financial statements apply to Stuart Company Year 2 $ 220,900 Year 1 $ 181,800 es 124,100 19,900 9,300 1,700 19,200 174,200 102,780 17,900 8, 380 1,700 16,880 147, 480 $ 46,700 34,400 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 Bonds payable Total liabilities Stockholders' equity Common stock (40,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 5,700 $ 6,400 2,100 2,100 35,990 30,800 101, 100 95, 100 4,200 3,200 149,000 137,600 105, 200 105,200 21,000 $ 275,200 $ 242,800 $ $ 39,400 15, 100 54,500 65,900 120,400 34,600 15,500 50, 100 66,990 117,000 113,200 41,600 154,300 $ 275,200 113,200 12,600 125,800 $ 242,800 Ences 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 $6.09 and 54 96, 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.) 9. 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 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.) I. 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 % % % % % times Emes times times a. Not margin b Return on investment c Return on equity d Camings per share Price camins ratio f Book value per share of common stock 9 Times Inforest eamed b Working capital Current ratio 1 Quick (add-test) ratio k Accounts receivable turnover inventory turnover m Debt-to-equity ratio Debt-to-assets ratio times times times times