The following financial statements apply to Zachary 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 (43,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity 52700 b. a. C. d. e. f. Net margin Return on investment Return on equity Earnings per share Price-earnings ratio Book value per share of common stock Times interest earned 9- h. Working capital i. Current ratio j. Quick (acid-test) ratio k. Accounts receivable turnover L Inventory turnover m. Debt-to-equity ratio Debt-to-assets ratio n. $ S Year 2 Required Calculate the following ratios for Year 1 and Year 2. When data limitations prohibit computing averages, use year-end balances in your calculations. 19.38 % 11.84 % 17.24 % 0.33 196,400 4.56 times times 6.46 times 0.63 times 0.40 29 % S S Year 1 18.72 % 9.46 % 13.77 % 0.27 188,200 4.67 Year 2 $ 220,800 $ 5,700 1,900 36,800 203,000 4,200 251,600 105,600 20,400 $ 377,600 times 34 % 125,800 19,700 10,700 1,300 20,500 178,000 $ 42,800 128,000 141,700 269,700 $ 377,600 times 5.34 times 0.51 times 0.52 $ 39,200 16,000 55,200 52,700 107,900 Year 1 $ 182,700 102,100 17,700 9,700 1,300 17,700 148,500 $ 34,200 $ 7,800 1,900 31,600 195,000 3,200 239,500 105,600 0 $ 345,100 $ 35,000 16,300 51,300 66,900 118,200 128,000 98,900 226,900 $ 345,100

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