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.) 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.) a. b. C. d. e. f. 9. h. Working capital i. Current ratio j. k. I. m. Net margin Return on inve ment Return on equity Earnings per share Price-earnings ratio Book value per share of common stock Times interest earned n. Quick (acid-test) ratio Accounts receivable turnover Inventory turnover Debt-to-equity ratio Debt-to-assets ratio Year 2 19.50 % 27.93 % times times times times % Year 1 19.27 % 14.32 27.56 % times times times times %

Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter10: Stockholder's Equity
Section: Chapter Questions
Problem 78E: Ratio Analysis Consider the following information. Required: Calculate the stockholder payout...
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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.)
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.)
a.
b.
C.
d.
e.
f.
g.
h.
li.
j.
k.
I.
m.
n.
Net margin
Return on investment
Return on equity
Earnings per share
Price-earnings ratio
Book value per share of common stock
Times interest earned
Working capital
Current ratio
Quick (acid-test) ratio
Accounts receivable turnover
Inventory turnover
Debt-to-equity ratio
Debt-to-assets ratio
Year 2
19.50 %
15.59 %
27.93 %
times
times
times
times
%
Year 1
19.27 %
14.32 %
27.56 %
times
times
times
times
%
Transcribed Image Text: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.) 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.) a. b. C. d. e. f. g. h. li. j. k. I. m. n. Net margin Return on investment Return on equity Earnings per share Price-earnings ratio Book value per share of common stock Times interest earned Working capital Current ratio Quick (acid-test) ratio Accounts receivable turnover Inventory turnover Debt-to-equity ratio Debt-to-assets ratio Year 2 19.50 % 15.59 % 27.93 % times times times times % Year 1 19.27 % 14.32 % 27.56 % times times times times %
The following financial statements apply to Campbell 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 (42,000 shares)
Retained earnings
Total stockholders' equity
Total liabilities and stockholders' equity
Year 2
$ 218,400
124,400
20,500
9,000
1,600
20,300
175,800
42,600
4,200
2,300
35,300
100,300
4,200
146,300
106,400
20,600
$ 273,300
$ 38,400
16,400
54,800
66,000
120,800
113,300
39,200
152,500
$ 273,300
Year 1
$ 181,600
101,300
18,500
8,000
1,600
17,200
146, 600
$ 35,000
$ 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
13,700
127,000
$ 244,500
Transcribed Image Text:The following financial statements apply to Campbell 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 (42,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Year 2 $ 218,400 124,400 20,500 9,000 1,600 20,300 175,800 42,600 4,200 2,300 35,300 100,300 4,200 146,300 106,400 20,600 $ 273,300 $ 38,400 16,400 54,800 66,000 120,800 113,300 39,200 152,500 $ 273,300 Year 1 $ 181,600 101,300 18,500 8,000 1,600 17,200 146, 600 $ 35,000 $ 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 13,700 127,000 $ 244,500
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