The following financial statements apply to Vernon Company: 2019 2018 $210,800 9,100 219,900 $176,000 5,900 181,900 125,400 20,600 9,600 2,100 20,700 178,400 102,500 18,600 8,600 2,100 16,100 147,900 $ 41,500 $ 34,000 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 Bonds payable Total liabilities Stockholders' equity Common stock (40,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 4,000 1,300 36,400 101,600 4,500 147,800 107,000 20,800 $275,600 $ 6,800 1,300 31,500 95,500 3,500 138,600 107,000 $245,600 $ 39,800 15,900 55,700 65,400 121,100 $ 55,700 16,700 72,400 66,400 138,800 114,100 114,100 40,400 (7,300) 154,500 106,800 $275,600 $245, 600 Required Calculate the following ratios for 2018 and 2019. Since 2017 numbers are not presented do not use averages when calculating the ratios for 2018. Instead, use the number presented on the 2018 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 2018 and 2019 were $6.10 and $4.94, 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. 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. 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.) 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.) 2019 2018 times times times times a. Net margin b. Return on investment c. Return on equity d. Earnings per share e. Price-earnings ratio f. Book value g. Interest earned h. Working capital i. Current ratio j Quick (acid-test) ratio k. Accounts receivable turnover 1. Inventory turnover m. Debt to equity ratio n. Debt to assets ratio times times times times %