Year 2 $ 220,200 Year 1 $ 181,700 125, 500 102,700 20,900 18,900 10, 100 9, 100 1,200 1,200 21,000 16, 100 178, 700 148,000 $ 41,500 $ 33,700 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 6,000 2,300 35,300 101,900 4,500 150,000 105, 200 20, 300 $ 275,500 $ 7,200 2,300 31,600 95, 100 3,500 139, 700 105, 200 $ 244,900 $ 38, 700 $ 34,500 Liabilities and Stockholders' Equity Liabilities Current liabilities Accounts payable Other Total current liabilities Bonds payable Total liabilities Stockholders' equity Common stock (43,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 38, 700 16,800 55,500 66,000 121, 500 $ 34,500 16, 700 51,200 67,000 118, 200 113,700 40, 300 154,000 $ 275,500 113,700 13,000 126, 700 $ 244,900 Year 2 Year 1 18.85% 18.55 % 15.95% 96 96 % times times a Net margin b. Return on investment C. Return on equity d. Earnings per share e. Price-earnings ratio f. Book value per share of common stock g. Times interest earned h Working capital i. Current ratio Quick (acid-test) ratio k. Accounts receivable turnover 1. Inventory turnover m. Debt-to-equity ratio n. Debt-to-assets ratio times times times times times times % 96