The following financial statements apply to Stuart Company Year 2 $ 220,600 Year 1 $ 181,100 125,500 19, 100 9,100 2,400 20,500 176,600 $ 44,080 102,200 17,100 8,100 2,400 16,100 145,900 35,200 $ 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 (43,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 4,800 2,300 36,500 188,600 4,700 148,900 105,800 21,600 $ 276,300 $ 6,200 2,300 31,100 95,000 3,700 138,300 105,800 9 $ 244,100 $ $ 38,500 16,500 55,800 65,900 120,900 35,700 15,400 51,100 66,990 118,000 113,200 42,200 155, 480 276,300 113,280 12,980 126, 100 $ 244,100 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 Yeart and Year 2 were $6.12 and $477 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 facid-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.) S $ Year 2 19.95 % 19.88 % 28.31% 1.02 times 3.24 times 93,900 2.71 Year 1 19.44 % 18.24% 27.91% 0.82 times 2.63 times 87,200 2.71 S a Net margin b. Return on investment Return on equity d. Earnings per share e. Price-earnings ratio f. Book value per share of common stock 9 Times interest earned h. Working capital i. Current ratio j. Quick (acid-test) ratio K k Accounts receivable turnover L Inventory turnover m Debt-to-equity ratio n Debt-to-assets ratio $ $ $ en times times times 2.28 44% times 2.07 48 %
