Year 2 $ 218,800 Year 1 $ 182,300 125,800 20,900 9,900 2,400 20,300 179,300 39,500 101,900 18,900 8,900 2,400 17,400 149,500 32,800 $ $ $ 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 (46,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 5,400 1,300 35,500 100,900 4,100 147,200 105,000 21,200 $ 273,400 6,300 1,300 31,400 94,300 3,100 136,400 105,000 $ 241,400 $ $ 38,300 15,100 53,400 64,700 118,100 34,600 15,000 49,600 65,700 115,300 114,900 40,400 155,300 $ 273,400 114,900 11,200 126, 100 $ 241,400 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 $6.00 and $4.81, 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.) a. Year 2 18.12 % % Year 1 18.02% % % b. C. % e. times times times times Net margin Return on investment Return on equity d. Earnings per share Price-earnings ratio f. Book value per share of common stock g. Times interest earned h. Working capital i. Current ratio j. Quick (acid-test) ratio k. Accounts receivable turnover I. Inventory turnover m. Debt-to-equity ratio Debt-to-assets ratio times times times times n. % %