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 = f = -  Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles  !eferences  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'  Rea uired  equity  Year 2 Year 1 $ 219,800 $ 181,300  124,300 20,900 9,700 2,400 19,900  177,200  101,100 18,900 8,700 2,400 16,300  147,400  $ 42,600 $ 33,900  $ 5,600 2,500 36,400 101,500 3,400  149,400 106,900 21,600  $ 277,900  $ 39,400 15,900 55,300 64,300  119,600  113,100 45,200 158,300  $ 277,900  $ 7,600 2,500 31,400 94,200 2,400  138,100 106,900 0  $ 245,000  $ 35,500 15,200  50,700 65,300  116,000  113,100 15,900  129,000  $ 245,000    Required Calculate the following ratios for Year land Year 2

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 = f = - 
Assets Current assets Cash Marketable securities Accounts receivable Inventories Prepaid expenses Total current assets Plant and equipment (net) Intangibles 
!eferences 

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' 
Rea uired 
equity 
Year 2 Year 1 $ 219,800 $ 181,300 
124,300 20,900 9,700 2,400 19,900  177,200 
101,100 18,900 8,700 2,400 16,300  147,400 
$ 42,600 $ 33,900 
$ 5,600 2,500 36,400 101,500 3,400  149,400 106,900 21,600  $ 277,900 
$ 39,400 15,900 55,300 64,300  119,600 
113,100 45,200 158,300  $ 277,900 
$ 7,600 2,500 31,400 94,200 2,400  138,100 106,900 0 
$ 245,000 
$ 35,500 15,200  50,700 65,300  116,000 
113,100 15,900  129,000  $ 245,000 
 

Required Calculate the following ratios for Year land 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. 
• .1 di. L I 
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 land Year 2 were $5.98 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.) 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.)