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Financial statements for Solomon Company follow.

SOLOMON COMPANY
Balance Sheets As of December 31
	2019				2018
Assets
Current assets
Cash	$	23,000			$	19,000
Marketable securities		21,400				7,400
Accounts receivable (net)		55,000				47,000
Inventories		140,000				148,000
Prepaid items		29,000				14,000
Total current assets		268,400				235,400
Investments		32,000				25,000
Plant (net)		280,000				265,000
Land		32,000				27,000
Total assets	$	612,400			$	552,400
Liabilities and Stockholders Equity
Liabilities
Current liabilities
Notes payable	$	35,400			$	13,900
Accounts payable		88,800				75,000
Salaries payable		23,000				17,000
Total current liabilities		147,200				105,900
Noncurrent liabilities
Bonds payable		120,000				120,000
Other		29,000				24,000
Total noncurrent liabilities		149,000				144,000
Total liabilities		296,200				249,900
Stockholders equity
Preferred stock, (par value $10, 4% cumulative, non-participating; 9,000 shares authorized and issued)		90,000				90,000
Common stock (no par; 50,000 shares authorized; 10,000 shares issued)		90,000				90,000
Retained earnings		136,200				122,500
Total stockholders equity		316,200				302,500
Total liabilities and stockholders equity	$	612,400			$	552,400

SOLOMON COMPANY
Statements of Income and Retained Earnings For the Years Ended December 31
	2019				2018
Revenues
Sales (net)	$	370,000			$	350,000
Other revenues		10,800				7,800
Total revenues		380,800				357,800
Expenses
Cost of goods sold		185,000				145,000
Selling, general, and administrative		69,000				64,000
Interest expense		12,200				11,400
Income tax expense		93,000				92,000
Total expenses		359,200				312,400
Net earnings (net income)		21,600				45,400
Retained earnings, January 1		122,500				85,000
Less: Preferred stock dividends		3,600				3,600
Common stock dividends		4,300				4,300
Retained earnings, December 31	$	136,200			$	122,500

Required

Calculate the following ratios for 2019 and 2018. Since 2017 numbers are not presented, do not use averages when calculating the ratios for 2018. Instead, use the number presented on the 2018 balance sheet.

1. Working capital.
2. Current ratio. (Round your answers to 2 decimal places.)
3. Quick ratio. (Round your answers to 2 decimal places.)
4. Receivables turnover (beginning receivables at January 1, 2018, were $48,000). (Round your answers to 2 decimal places.)
5. Average days to collect accounts receivable. (Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.)
6. Inventory turnover (beginning inventory at January 1, 2018, was $154,000). (Round your answers to 2 decimal places.)
7. Number of days to sell inventory. (Round your intermediate calculations to 2 decimal places and your final answers to the nearest whole number.)
8. Debt to assets ratio. (Round your answers to the nearest whole percent.)
9. Debt to equity ratio. (Round your answers to 2 decimal places.)
10. Number of times interest was earned. (Round your answers to 2 decimal places.)
11. Plant assets to long-term debt. (Round your answers to 2 decimal places.)
12. Net margin. (Round your answers to 2 decimal places.)
13. Turnover of assets. (Round your answers to 2 decimal places.)
14. Return on investment. (Round your answers to 2 decimal places.)
15. Return on equity. (Round your answers to 2 decimal places.)
16. Earnings per share. (Round your answers to 2 decimal places.)
17. Book value per share of common stock. (Round your answers to 2 decimal places.)
18. Price-earnings ratio (market price per share: 2018, $12.45; 2019, $13.90). (Round your intermediate calculations and final answer to 2 decimal places.)
19. Dividend yield on common stock. (Round your answers to 2 decimal places.)

2019 2018 a. Working capital $23,000 $19,000 b. Current ratio c. Quick ratio d. Receivables turnover times times e. Average days to collect accounts receivable days days f. Inventory turnover times times g. Average days to sell inventory days days h. Debt to assets ratio % % i. Debt to equity ratio j. Number of times interest earned times times k. Plant assets to long-term debt l. Net margin % % m. Asset turnover n. Return on investment % % o. Return on equity % % p. Earnings per share per share per share q. Book value per share per share per share r. Price-earnings ratio s. Dividend yield % %

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