The following financial statements apply to Zachary Company: Year 2 $ 221,000 Year 1 $ 182,600 Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses 125,100 19,000 9,600 1,100 20,200 175,000 102,700 17,000 8,600 1,100 17,600 147,000 Net income $ 46,000 $ 35,600 $ 5,200 2,800 36,200 100, 100 3,400 147,700 105,900 21,200 $ 274,800 $ 6,400 2,800 31,800 94,100 2,400 137,500 105,900 0 $ 243,400 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 (44,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ $ 38,900 15,400 54,300 64,100 118,400 34,800 16,600 51,400 65,100 116,500 113,300 43,100 156,400 $ 274,800 113,300 13,600 126,900 $ 243,400 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 $5.97 and $4.86, 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.) 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.) Year 2 Year 1 a. Net margin % % b. Return on investment % % C. % d. e. Return on equity Earnings per share Price-earnings ratio Book value per share of common stock Times interest earned times times f. g. times times h. Working capital i. Current ratio j. Quick (acid-test) ratio Accounts receivable turnover k. times times times times 1. Inventory turnover m. Debt-to-equity ratio n. Debt-to-assets ratio % %