Question

Financial statements for Vernon Company follow. VERNON COMPANY Balance Sheets As of December 31 2019 2018 $ 24,500 21,700 58,000 143,000 27,000 274,200 32,000 295,000 27,000 $628,200 $ 20,500 7,700 50,000 151,000 12,000 241,200 25,000 280,000 22,000 $568,200 Assets Current assets Cash Marketable securities Accounts receivable (net) Inventories Prepaid items Total current assets Investments Plant (net) Land Total assets Liabilities and Stockholders' Equity Liabilities Current liabilities Notes payable Accounts payable Salaries payable Total current liabilities Noncurrent liabilities Bonds payable Other Total noncurrent liabilities Total liabilities $ 35,200 103,800 26,000 165,000 $ 10,200 90,000 20,000 120, 200 150,000 32,000 182,000 347,000 150,000 27,000 177,000 297,200

Answer 1

			2019	2018
k.	Plant Assets to long-term debt	Plant ( net ) / Total Non-current Liabilities	1,62 times	1.58 times
l.	Net Margin	Net Earnings / Total Revenues	4.45 %	12.38 %
m.	Asset Turnover	Total Revenues / Total Assets	0.65	0.68
p.	Earnings per Share	( Net Earnings - Preferred Dividends ) / Common Shares Outstanding	$ 1.48 per share	$ 4.46 per share