Problem 9-23Ratio analysis

The following financial statements apply to Robin Company.

Using Excel calculate the following ratios for 2014 and 2015. 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 2014 and 2015 were $5.94 and $4.77, 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