Ratios from Comparative and Common-Size Data Consider the following financial statements for Vega Company. During the year, management obtained additional bond financing to enlarge its production facilities. The plant addition produced a new high-margin product, which is supposed to improve the average rate of gross profit and return on sales. As a potential investor, you decide to analyze the financial statements:

VEGA COMPANY Balance Sheets (Thousands of Dollars)
	Dec. 31, 2013	Dec. 31, 2012
Assets
Cash	$23,000	$18,100
Accounts receivable (net)	41,000	23,400
Inventory	107,000	74,000
Prepaid expenses	3,500	5,000
Plant and other assets (net)	465,500	429,500
Total Assets	$640,000	$550,000
Liabilities and Stockholders' Equity
Current liabilities	$74,000	$43,000
9% Bonds payable	191,500	154,000
8% Preferred stock, $50 Par Value	64,000	64,000
Common stock, $10 Par Value	227,000	227,000
Retained earnings	83,500	62,000
Total Liabilities and Stockholders' Equity	$640,000	$550,000

VEGA COMPANY Income Statements (Thousands of Dollars)
	2013	2012
Sales revenue	$842,000	$699,500
Cost of goods sold	554,000	476,000
Gross profit on sales	288,000	223,500
Selling and administrative expenses	233,000	176,000
Income before interest expense and income taxes	55,000	47,500
Interest expense	18,800	15,500
Income before income taxes	36,200	32,000
Income tax expense	14,100	12,600
Net income	$22,100	$19,400
Other financial data (thousands of dollars)
Cash provided by operating activities	$30,000	$25,000
Preferred stock dividends	4,800	4,800

Required a. Calculate the following for each year: current ratio, quick ratio, operating-cash-flow-to-current liabilities ratio (current liabilities were $42 million at January 1, 2012), inventory turnover (inventory was $68 million at January 1, 2012), debt-to-equity ratio, times-interest-earned ratio, return on assets (total assets were $472 million at January 1, 2012), and return on common stockholders' equity (common stockholders' equity was $266 million at January 1, 2012).

b. Calculate common size percentage for each year's income statement. Round answers to two decimal places.

	2013		2012
Current ratio:	Answer		Answer
Quick ratio:	Answer		Answer
Operating-cash-flow-to-current-liabilities ratio:	Answer		Answer
Inventory turnover:	Answer		Answer
Debt-to-equity ratio:	Answer		Answer
Times-interest-earned ratio:	Answer		Answer
Return on assets:	Answer	%	Answer	%
Return on common stockholders' equity:	Answer	%	Answer	%

Round answers to one decimal place.

Income Statements
	Year Ended 2013	Common- Size	Year Ended 2012	Common- Size
Sales revenue	$842,000	Answer	$699,500	Answer
Cost of goods sold	554,000	Answer	476,000	Answer
Gross profit on sales	288,000	Answer	223,500	Answer
Selling and administrative expenses	233,000	Answer	176,000	Answer
Income before interest expense and income taxes	55,000	Answer	47,500	Answer
Interest expense	18,800	Answer	15,500	Answer
Income before income taxes	36,200	Answer	32,000	Answer
Income tax expense	14,100	Answer	12,600	Answer
Net income	$22,100	Answer	$19,400	Answer