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PHAROAH COMPANY Balance Sheets December 31 (in thousands)
		2022		2021
Current assets
Cash and cash equivalents		$330		$360
Accounts receivable (net)		570		500
Inventory		640		570
Prepaid expenses		130		160
Total current assets		1,670		1,590
Property, plant, and equipment (net)		410		380
Investments		110		110
Intangibles and other assets		530		510
Total assets		$2,720		$2,590
Current liabilities		$920		$890
Long-term liabilities		660		560
Stockholders equitycommon		1,140		1,140
Total liabilities and stockholders equity		$2,720		$2,590

PHAROAH COMPANY Income Statements For the Year Ended December 31 (in thousands)
		2022		2021
Sales revenue		$3,980		$3,640
Costs and expenses
Cost of goods sold		1,070		990
Selling & administrative expenses		2,400		2,330
Interest expense		10		20
Total costs and expenses		3,480		3,340
Income before income taxes		500		300
Income tax expense		200		120
Net income		$ 300		$ 180

Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%.)

(a)		Current ratio.
(b)		Inventory turnover. (Inventory on December 31, 2020, was $410.)
(c)		Profit margin.
(d)		Return on assets. (Assets on December 31, 2020, were $2,540.)
(e)		Return on common stockholders equity. (Equity on December 31, 2020, was $950.)
(f)		Debt to assets ratio.
(g)		Times interest earned.

		2022			2021
Current ratio.			:1			:1
Inventory turnover.
Profit margin.			%			%
Return on assets.			%			%
Return on common stockholders equity.			%			%
Debt to assets ratio.			%			%
Times interest earned.

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