Martinez Company manufactures backpacks. During 2022, Martinez issued bonds at 12% interest and used the cash for the years 2022 and 2021.
2022
Sales revenue: $13,050,000
Net income: $3,248,000
Interest expense: $950,000
Tax expense: $971,500
Dividends paid on common stock: $1,691,000
Dividends paid on preferred stock: $570,000
Total assets (year-end): $21,025,000
Average total assets: $22,746,875
Total liabilities (year-end): $11,400,000
Average total common stockholders' equity: $26,790,000
2021
Sales revenue: $13,050,000
Net income: $3,625,000
Interest expense: $266,000
Tax expense: $1,087,500
Dividends paid on common stock: $1,949,400
Dividends paid on preferred stock: $570,000
Total assets (year-end): $24,468,750
Average total assets: $33,749,700
Total liabilities (year-end): $17,860,000
(a) Use the information above to calculate the following ratios for both years: Round answers to 1 decimal place (e.g. 12.5% or 12.5).
2022
(1) Return on assets: %
(2) Return on common stockholders' equity: %
(3) Payout ratio: %
(4) Debt to assets ratio: %
(5) Times interest earned: times
2021
(1) Return on assets: %
(2) Return on common stockholders' equity: %
(3) Payout ratio: %
(4) Debt to assets ratio: %
(5) Times interest earned: times
