RequiredCalculate the following ratios for Year 4 and Year 3. Since Year 2 numbers are not presented do not use averages when calculating theratios for Year 3. Instead, use the number presented on the Year 3 balance sheet.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 $47,000). (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 placesand your final answers to the nearest whole number.)f. Inventory turnover (beginning inventory at January 1, Year 3, was $140,000). (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 yourfinal 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.)I. Net margin. (Round your answers to 2 decimal places.)m. Turnover of assets (average total assets in Year 3 is $540,000). (Round your answers to 2 decimal places.)n. Return on investment (average total assets in Year 3 is $540,000). (Round your answers to 2 decimal places.)o. Return on equity (average stockholders' equity in Year 3 is $292,000). (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, $11.75; Year 4, $12.50). (Round your intermediate calculations and finalanswer to 2 decimal places.)s. Dividend yield on common stock. (Round your answers to 2 decimal places.)Year 4Year 3a.Working capitalb.Current ratioC.Quick ratiod.Receivables turnover (beginning receivables at January 1, Year 3, were $47,000)e. Average days to collect accounts receivablef. Inventory turnover (beginning inventory at January 1, Year 3, was $140,000)g. Number of days to sell inventoryh.Debt-to-assets ratio|i.Debt-to-equity ratioj.Number of times interest was earned|k. Plant assets to long-term debt|I.Net marginm. Turnover of assets (average total assets in Year 3 is $540,000)n.Return on investment (average total assets in Year 3 is $540,000)O.Return on equity (average stockholders' equity in Year 3 is $292,000)p. Earnings per share (total shares outstanding is unchanged)q. Book value per share of common stockr. Price-earnings ratio (market price per share: Year 3, $11.75; Year 4, $12.50)S. Dividend yield on common stocktimesdaystimesdays%times%%%per shareper share%timesdaystimesdays%times%%%per shareper share% Financial statements for Allendale Company follow:AssetsCurrent assetsCashMarketable securitiesAccounts receivable (net)InventoriesPrepaid itemsTotal current assets.InvestmentsPlant (net)LandTotal assetsLiabilities and Stockholders' EquityLiabilitiesCurrent liabilitiesNotes payableAccounts payableSalaries payableTotal current liabilitiesNoncurrent liabilitiesBonds payableOtherTotal noncurrent liabilitiesTotal liabilitiesStockholders' equityPreferred stock, (par value $10, 4% cumulative, non-participating; 8,000shares authorized and issued)Common stock (no par; 50,000 shares authorized; 10,000 shares issued)Retained earnings.Total stockholders' equityTotal liabilities and stockholders' equityALLENDALE COMPANYStatements of Income and Retained Earnings.For the Years Ended December 31Year 4Year 3Revenues$230,0008,000$210,0005,000238,000215,000120,000103,00055,00050,0008,0007,20023,00022,000206,000182,20032,00032,800132,000107,0003,2003,2004,6004,600$156,200$132,000Sales (net)Other revenuesTotal revenues.Cost of goods soldSelling, general, and administrativeInterest expenseIncome tax expenseTotal expensesNet earnings (net income)Retained earnings, January 1Less: Preferred stock dividendsCommon stock dividendsRetained earnings, December 31ExpensesALLENDALE COMPANYBalance SheetsAs of December 31Year 4.Year 3$ 36,000$ 40,00020,00054,0006,00046,000143,000135,00025,00010,000274,000241,00027,00020,000270,000255,00029,00024,000$600,000$540,000$ 17,000113,80021,000$ 6,000100,00015,000151,800121,000100,000100,00032,00027,000132,000127,000283,800248,00080,00080,00080,00080,000156,200132,000316,200292,000$600,000 $540,000

Question

Accepted Answer

Solution:-
a)Calculation of Working capital as follows under:-
Working capital is the difference…

a. Working capital. b. Current ratio. (Round your answers to 2 decimal places.) c. Quick ratio. (Round your answers to 2 decimal places.)