Year 4 Year 3 $ 211,400 9,700 221,100 $176,000 6,800 182,800 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 125, 100 20,000 9,900 2,100 20,100 177,200 $ 43,900 102,200 18,000 8,900 2,100 17,900 149,100 $ 33, 700 $ 5,200 1,900 35,700 101,100 4,500 148,400 106,300 20,600 $275,300 $ 7,600 1,900 30,300 95,200 3,500 138,500 106,300 0 $ 244,800 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 47,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity $ 40,000 16,700 56,700 64,200 120,900 $ 55,800 15,400 71,200 65,200 136,400 113,400 41,000 154,400 $275, 300 113,400 (5,000) 108,400 $ 244,800 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 $6.14 and $4.96, 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.) a. Year 4 20.77% 14.66% Year 3 19.15% 15.49% b. c. % d. e. Net margin Return on investment Return on equity Earnings per share Price-earnings ratio Book value Interest earned Working capital Current ratio times times f. 9. times times h Year 3 Year 4 20.77% a. 19.15% 15.49% 14.66% % % times times times times Net margin b. Return on investment C. Return on equity d. Earnings per share e. Price-eamings ratio f. Book value 9. Interest earned h. Working capital i. Current ratio j. Quick (acid-test) ratio Ik Accounts receivable turnover L. Inventory turnover m. Debt-to-equity ratio n. Debt-to-assets ratio times times times times % %
