The following financial statements apply to Walton Company: Revenues Expenses Cost of goods sold Selling expenses...

 

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The following financial statements apply to Walton Company: Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets urrent 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 (48,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Year 2 $ 220,000 $ 125,900 19,900 10,300 1,600 19,800 177,500 42,500 147,100 105,500 20,600 $ 273,200 $ 4,400 $ 2,500 36,500 100,500 3,200 $ 39,700 16,000 55,700 65,300 121,000 Year 1 $ 181,900 113,200 39,000 152,200 $ 273,200 $ 102,800 17,900 9,300 1,600 16,900 148,500 33,400 6,900 2,500 30,800 94,200 2,200 136,600 105,500 0 $ 242,100 $ 34,800 15,000 49,800 66,300 116,100 113,200 12,800 126,000 $ 242,100 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. 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 1 and Year 2 were $6.09 and $4.94, 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.) The following financial statements apply to Walton Company: Revenues Expenses Cost of goods sold Selling expenses General and administrative expenses Interest expense Income tax expense Total expenses Net income Assets urrent 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 (48,000 shares) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity Year 2 $ 220,000 $ 125,900 19,900 10,300 1,600 19,800 177,500 42,500 147,100 105,500 20,600 $ 273,200 $ 4,400 $ 2,500 36,500 100,500 3,200 $ 39,700 16,000 55,700 65,300 121,000 Year 1 $ 181,900 113,200 39,000 152,200 $ 273,200 $ 102,800 17,900 9,300 1,600 16,900 148,500 33,400 6,900 2,500 30,800 94,200 2,200 136,600 105,500 0 $ 242,100 $ 34,800 15,000 49,800 66,300 116,100 113,200 12,800 126,000 $ 242,100 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. 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 1 and Year 2 were $6.09 and $4.94, 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.)

Answer rating: 100% (QA)

To calculate the requested financial ratios for Year 1 and Year 2 for Walton Company well use the provided financial statement data well calculate eac... View the full answer