# The following financial statements apply to Karl Company: Required Calculate the following ratios for 2018 and 2019.

## Question:

The following financial statements apply to Karl Company:

Required

Calculate the following ratios for 2018 and 2019. When data limitations prohibit computing averages, use year-end balances in your calculations. Round computations to two decimal points.

a. Net margin.

b. Return on investment.

c. Return on equity.

d. Earnings per share.

e. Price-earnings ratio (market prices at the end of 2018 and 2019 were $11.88 and $9.54, respectively).

f. Book value per share of common stock.

g. Times interest earned.

h. Working capital.

i. Current ratio.

j. Quick (acid-test) ratio.

k. Accounts receivable turnover.

l. Inventory turnover.

m. Debt to equity ratio.

n. Debt to assets ratio.

Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...

## Step by Step Answer:

**Related Book For**

## Fundamental Managerial Accounting Concepts

**ISBN:** 978-1259569197

8th edition

**Authors:** Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds