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4 Otis Company's income statement information follows: Net sales Income before interent and taxes Net Income after taxes Interest expense Stockholders' equity, December 31 (Year 1: $200,000) Common stock, December 31 Your $480,000 120,000 81,000 9,000 300,000 240,000 Year 2 $320,000 98,000 72,000 8,000 240,000 200,000 Book The average number of shares outstanding was 9,600 for Year 3 and 8,000 for Year 2. Required Compute the following ratios for Otis for Year 3 and Year 2. ferences a. Number of times interest was earned. (Round your answers to 2 decimal places.) b. Earnings per share based on the average number of shares outstanding. (Round your answers to 2 decimal plac c. Price-carnings ratio (market prices: Year 3. $64 per share: Year 2. 578 per share). (Round intermediate calculatio answers to 2 decimal places.) d. Return on average equity (Round your answers to 2 decimal places. (l ...2345 should be entered as 23.451) e. Net margin (Round your answers to 2 decimal places. (...2345 should be entered as 23.45)) Years Year 2 times res 2. Time interesteamed D. Earnings pur share Price-camins ratio d. Return on average equity Ne margin imes Nime % 5 f. Book value per share of common stock. (Round your answers to 2 decimal places.) 9. Times interest earned (Round your answers to 2 decimal places.) h. Working capital. 1. 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.) 4 points eBook Year 2 Year 1 Print % % 5 terences times times a. Net margin b. Return on investment c. Return on equity d. Eamings per share Price-earnings ratio Book value per share of common stock Times interest eamed h. Working capital Current ratio Quick (acid-test) ratio k Accounts receivable turnover Inventory turnover m Debt-to-equity ratio in Debt-to-assets ratio times times times times times times % 56 4 Otis Company's income statement information follows: Net sales Income before interent and taxes Net Income after taxes Interest expense Stockholders' equity, December 31 (Year 1: $200,000) Common stock, December 31 Your $480,000 120,000 81,000 9,000 300,000 240,000 Year 2 $320,000 98,000 72,000 8,000 240,000 200,000 Book The average number of shares outstanding was 9,600 for Year 3 and 8,000 for Year 2. Required Compute the following ratios for Otis for Year 3 and Year 2. ferences a. Number of times interest was earned. (Round your answers to 2 decimal places.) b. Earnings per share based on the average number of shares outstanding. (Round your answers to 2 decimal plac c. Price-carnings ratio (market prices: Year 3. $64 per share: Year 2. 578 per share). (Round intermediate calculatio answers to 2 decimal places.) d. Return on average equity (Round your answers to 2 decimal places. (l ...2345 should be entered as 23.451) e. Net margin (Round your answers to 2 decimal places. (...2345 should be entered as 23.45)) Years Year 2 times res 2. Time interesteamed D. Earnings pur share Price-camins ratio d. Return on average equity Ne margin imes Nime % 5 f. Book value per share of common stock. (Round your answers to 2 decimal places.) 9. Times interest earned (Round your answers to 2 decimal places.) h. Working capital. 1. 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.) 4 points eBook Year 2 Year 1 Print % % 5 terences times times a. Net margin b. Return on investment c. Return on equity d. Eamings per share Price-earnings ratio Book value per share of common stock Times interest eamed h. Working capital Current ratio Quick (acid-test) ratio k Accounts receivable turnover Inventory turnover m Debt-to-equity ratio in Debt-to-assets ratio times times times times times times % 56
