Problem 13-23A (Algo) Ratio analysis LO 13-2, 13-3, 13-4, 13-5 The following financial statements apply to Adams Company: 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 Year 2 $220,700 125,800 101,600 19,300 17,300 10,000 9,000 1,100 1,100 19, 100 16,600 175,300 145,600 $ 45,400 $ 35,800 Year 1 $181,400 $ 5,400 $ 2,100 36,700 101,800 4,700 53,700 65,500 119, 200 7,000 2,100 150,700 139,700 106,300 106,300 21,900 $278,900 $246,000 113,500 46,200 159,700 $278,900 31,100 95,800 3,700 $ 38,400 $ 35,000 15,300 0 15, 100 50, 100 66,500 116, 600 113,500 15,900 129,400 $246,000 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. . Net margin. (Round your answers to 2 decimal places.) . Return on investment. (Round your answers to 2 decimal places.) . Return on equity. (Round your answers to 2 decimal places.) 1. 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 $4.82, respectively). (Round your ntermediate calculations and final answers to 2 decimal places.) Book value per share of common stock. (Round your answers to 2 decimal places.) . Times interest earned. Exclude extraordinary income in the calculation as they cannot be expected to recur and, herefore, will not be available to satisfy future interest payments. (Round your answers to 2 decimal places.) . Working capital. . Current ratio. (Round your answers to 2 decimal places.) . Quick (acid-test) ratio. (Round your answers to 2 decimal places.) . Accounts receivable turnover. (Round your answers to 2 decimal places.) . Inventory turnover. (Round your answers to 2 decimal places.) m. Debt-to-equity ratio. (Round your answers to 2 decimal places.) . Debt-to-assets ratio. (Round your answers to the nearest whole percent.)