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 (42,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Year 2 $ 218,400 124,400 101, 300 20,500 18,500 9,000 8,000 1,600 1,600 20,300 17, 200 175,800 146,600 $ 42,600 $ 35,000 $ 4,200 $ 2,300 35,300 100,300 4,200 146,300 106,400 20,600 $ 273,300 Year 1 $ 181,600 $ 38,400 16,400 54,800 66,000 120,800 6,500 2,300 30,400 95,700 3,200 138, 100 106, 400 0 $ 244,500 $ 34,900 15,600 50,500 67,000 117,500 113,300 113,300 39,200 13,700 152,500 127,000 $ 273,300 $ 244,500 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.) 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. 2 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 $6.04 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.)