Problem $9-24$A $($Algo$)$ Ratio analysis LO $9-2,9-3,9-4,9-5$

Financial statements for Campbell Company follow.

CAMPBELL COMPANY

Balance Sheets

As of December $31$

Year $4$ Year $3$

Assets

Current assets

Cash $ $18,000$ $ $14,000$

Marketable securities $20,4006,400$

Accounts receivable $($net$)45,00037,000$

Inventories $130,000138,000$

Prepaid items $29,00014,000$

Total current assets $242,400209,400$

Investments $22,00015,000$

Plant $($net$)275,000260,000$

Land $30,00025,000$

Total assets $ $569,400$ $ $509,400$

Liabilities and Stockholders$$ Equity

Liabilities

Current liabilities

Notes payable $ $17,400$ $ $7,900$

Accounts payable $58,80045,000$

Salaries payable $25,00019,000$

Total current liabilities $101,20071,900$

Noncurrent liabilities

Bonds payable $140,000140,000$

Other $28,00023,000$

Total noncurrent liabilities $168,000163,000$

Total liabilities $269,200234,900$

Stockholders$$ equity

Preferred stock, $($par value $$10,4\%$ cumulative, non$-$participating; $9,000$

shares authorized and issued$)90,00090,000$

Common stock $($no par; $50,000$ shares authorized; $10,000$ shares issued$)90,00090,000$

Retained earnings $120,20094,500$

Total stockholders$$ equity $300,200274,500$

Total liabilities and stockholders$$ equity $ $569,400$ $ $509,400$

CAMPBELL COMPANY

Statements of Income and Retained Earnings

For the Years Ended December $31$

Year $4$ Year $3$

Revenues

Sales $($net$)$ $ $270,000$ $ $250,000$

Other revenues $8,8005,800$

Total revenues $278,800255,800$

Expenses

Cost of goods sold $135,000115,000$

Selling, general, and administrative $59,00054,000$

Interest expense $9,2008,400$

Income tax expense $43,00042,000$

Total expenses $246,200219,400$

Net earnings $($net income$)32,60036,400$

Retained earnings, January $194,50065,000$

Less: Preferred stock dividends $3,6003,600$

Common stock dividends $3,3003,300$

Retained earnings, December $31$ $ $120,200$ $ $94,500$

Required

Calculate the following ratios for Year $4$ and Year $3.$

a$.$ Working capital.

b$.$ Current ratio. $($Round your answers to $2$ decimal places.$)$

c$.$ Quick ratio. $($Round your answers to $2$ decimal places.$)$

d$.$ Receivables turnover $($beginning receivables at January $1,$ Year $3,$ were $$38,000).($Round your answers to $2$ decimal places.$)$

e$.$ Average days to collect accounts receivable. $($Use $365$ days in a year. Round your intermediate calculations to $2$ decimal places and your final answers to the nearest whole number.$)$

f$.$ Inventory turnover $($beginning inventory at January $1,$ Year $3,$ was $$144,000).($Round your answers to $2$ decimal places.$)$

g$.$ Number of days to sell inventory. $($Use $365$ days in a year. Round your intermediate calculations to $2$ decimal places and your final answers to the nearest whole number.$)$

h$.$ Debt$-$to$-$assets ratio. $($Round your answers to the nearest whole percent.$)$

i$.$ Debt$-$to$-$equity ratio. $($Round your answers to $2$ decimal places.$)$

j$.$ Number of times interest was earned. $($Round your answers to $2$ decimal places.$)$

k$.$ Plant assets to long$-$term debt. $($Round your answers to $2$ decimal places.$)$

l$.$ Net margin. $($Round your answers to $2$ decimal places.$)$

m$.$ Turnover of assets $($average total assets in Year $3$ is $$509,400).($Round your answers to $2$ decimal places.$)$

n$.$ Return on investment $($average total assets in Year $3$ is $$509,400).($Round your answers to $2$ decimal places.$)$

o$.$ Return on equity $($average stockholders' equity in Year $3$ is $$274,500).($Round your answers to $2$ decimal places.$)$

p$.$ Earnings per share $($total shares outstanding is unchanged$).($Round your answers to $2$ decimal places.$)$

q$.$ Book value per share of common stock. $($Round your answers to $2$ decimal places.$)$

r$.$ Price$-$earnings ratio $($market price per share: Year $3,$ $$11\mathrm{.}95$; Year $4,$ $$12\mathrm{.}90).($Round your intermediate calculations and final answer to $2$ decimal places.$)$

s$.$ Dividend yield on common stock. $($Round your answers to $2$ decimal places.$)$