The following financial statements apply to Thornton Company:

	Year 2				Year 1
Revenues	$	219,600			$	183,400
Expenses
Cost of goods sold		124,500				102,800
Selling expenses		20,700				18,700
General and administrative expenses		9,900				8,900
Interest expense		2,800				2,800
Income tax expense		20,200				17,100
Total expenses		178,100				150,300
Net income	$	41,500			$	33,100
Assets
Current assets
Cash	$	5,700			$	7,400
Marketable securities		1,700				1,700
Accounts receivable		35,700				30,700
Inventories		100,300				94,200
Prepaid expenses		3,500				2,500
Total current assets		146,900				136,500
Plant and equipment (net)		105,600				105,600
Intangibles		20,400				0
Total assets	$	272,900			$	242,100
Liabilities and Stockholders Equity
Liabilities
Current liabilities
Accounts payable	$	38,100			$	35,500
Other		16,300				16,400
Total current liabilities		54,400				51,900
Bonds payable		65,500				66,500
Total liabilities		119,900				118,400
Stockholders equity
Common stock (48,000 shares)		113,200				113,200
Retained earnings		39,800				10,500
Total stockholders equity		153,000				123,700
Total liabilities and stockholders equity	$	272,900			$	242,100

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 Year 1 and Year 2 were $5.95 and $4.84, 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.) g. Times interest earned. (Round your answers to 2 decimal places.) h. Working capital. i. 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.) l. 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.)

Answer is not complete. Year 2 18.90 a % b. % OO c. Year 1 18.05% 13.67 % 26.76 % 0.69 8.62 times 2.58 % d. $ e. times f. S g times times Net margin Return on investment Return on equity Earnings per share Price-earnings ratio Book value per share of common stock Times interest earned Working capital Current ratio Quick (acid-test) ratio Accounts receivable turnover Inventory turnover Debt-to-equity ratio Debt-to-assets ratio h i. j k. times times 1. times times m. n % %