The following financial statements apply to Vernon Company: VERNON COMPANY Income Statements for the Years Ending December 31 Revenues Year 2 $ 219,400 Year 1 $ 182,600 Expenses Cost of goods sold 124,500 101,800 Selling expenses 20,100 18,100 General and administrative expenses 9,700 8,700 Interest expense 1,800 1,800 Income tax expense 20,900 16,000 Total expenses 177,000 146,400 Net income $ 42,400 $ 36,200 Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles VERNON COMPANY Balance Sheets As of December 31 Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (49,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Required Year 2 Year 1 $ 4,400 2,300 $ 7,600 2,300 35,900 31,000 100, 200 95,700 4,400 3,400 147,200 105,700 21,700 $ 274,600 $ 245,700 140,000 105,700 $ 39,800 16,900 $ 35,500 16,200 56,700 51,700 65,700 66,700 122,400 118,400 114,900 114,900 37,300 152,200 12,400 127,300 $ 274,600 $ 245,700 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. Note: Round ratio answers to 2 decimal places unless otherwise indicated. a. Net margin. b. Return on Investment. c. Return on equity. d. Earnings per share. e. Price-earnings ratio (market prices at the end of Year 1 and Year 2 were $6.06 and $4.87, respectively). Note: Round your Intermediate calculations and final answers to 2 decimal places. f. Book value per share of common stock. g. Times Interest earned. h. Working capital. 1. Current ratio. J. Quick (acid-test) ratio. k. Accounts receivable turnover. I. Inventory turnover. m. Debt-to-equity ratio. n. Debt-to-assets ratio. Note: Round your answers to the nearest whole percent. Year 2 Year 1 a. Net margin b. Return on investment % % % % c. Return on equity % % d. Earnings per share e. Price-earnings ratio times times f. Book value per share of common stock g. Times interest earned times times h. Working capital i Current ratio j. Quick (acid-test) ratio k. Accounts receivable turnover times times i. Inventory turnover times times m. Debt-to-equity ratio n. Debt-to-assets ratio % %