The following financial statements apply to Zachary Company: 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 (48,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity. Year 2 $ 221,500 Year 1 $180,800 125,000 102,000 19,200 17,200 9,800 8,800 1,200 1,200 19,500 16,400 174,700 145,600 $ 46,800 $ 35,200 $ 4,200 $ 6,900 1,500 1,500 36,800 31,900 100,600 95,100 3,000 2,000 146,100 137,400 106,400 106,400 20,300 0 $ 272,800 $243,800 $ 38,900 $ 34,400 15,400 15,500 54,300 49,900 65,000 66,000 119,300 115,900 113,100 113,100 14,800 127,900 40,400 153,500 $ 272,800 $ 243,800 Requirea 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 $5.97 and $4.93, 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.) 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.) a. Net margin b. Return on investment Year 2 Year 1 % % % % % % 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 1. Inventory turnover times times times times m. Debt-to-equity ratio n. Debt-to-assets ratio % %