The following financial statements apply to Zachary Company: Year 4 Year 3 $210,900 8,800 219,700 $176,600 6,100 182,700 124, 100 20,800 10,100 1,500 20,600 177,100 $ 42,600 101,300 18,800 9,100 1,500 16,900 147,600 $ 35, 100 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 (45,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 4,000 1,900 35,900 101,100 3,800 146,700 106,100 20,400 $273,200 $ 6,300 1,900 30,400 94,800 2,800 136,200 106,100 $242,300 $ 39,100 15, 200 54,300 64,100 118,400 $ 54,500 16,700 71,200 65, 100 136,300 114,800 40,000 154,800 $273,200 114,800 (8,800) 106,000 $242,300 Required Calculate the following ratios for Year 3 and Year 4. Since Year 2 numbers are not presented do not use averages when calculating the ratios for Year 3. Instead, use the number presented on the Year 3 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 3 and Year 4 were $6.13 and $4.88, 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.) Year 4 20.20 Year 3 19.88 % % % % o looo 0-0 = times times times times Net margin Return on investment Return on equity Earnings per share Price-earnings ratio Book value Interest earned Working capital Current ratio Quick (acid-test) ratio Accounts receivable turnover Inventory turnover Debt-to-equity ratio Debt-to-assets ratio times times times times