The condensed financial statements of Murawski Company for theyears 2019 and 2020 are presented follows. (Amounts inthousands.)
MURAWSKI COMPANY Balance Sheets December 31 |
| | 2020 | | 2019 |
Current assets | | | | | | |
Cash and cash equivalents | | $ 358 | | | $ 353 | |
Accounts receivable (net) | | 388 | | | 490 | |
Inventory | | 388 | | | 474 | |
Prepaid expenses | | 170 | | | 120 | |
Total current assets | | 1,304 | | | 1,437 | |
Investments | | 13 | | | 12 | |
Property, plant, and equipment | | 390 | | | 418 | |
Intangibles and other assets | | 492 | | | 526 | |
Total assets | | $2,199 | | | $2,393 | |
Current liabilities | | $ 800 | | | $ 884 | |
Long-term liabilities | | 354 | | | 390 | |
Stockholders’ equity—common | | 1,045 | | | 1,119 | |
Total liabilities andstockholders’ equity | | $2,199 | | | $2,393 | |
MURAWSKI COMPANY Income Statements For the Years Ended December 31 |
| | 2020 | | 2019 |
Sales revenue | | $3,710 | | | $3,800 | |
Costs and expenses | | | | | | |
Cost of goods sold | | 896 | | | 984 | |
Selling & administrativeexpenses | | 2,330 | | | 2,410 | |
Interest expense | | 25 | | | 22 | |
Total costs andexpenses | | 3,251 | | | 3,416 | |
Income before income taxes | | 459 | | | 384 | |
Income tax expense | | 160 | | | 81 | |
Net income | | $ 299 | | | $ 303 | |
Compute the following ratios for 2020 and 2019. (Roundcurrent ratio and invertory turnover ratio to 2 decimal places,e.g. 1.62 or 1.62% and all other answers to 1 decimal place, e.g.1.6 or 1.6%.)
(a) | | Current ratio. |
(b) | | Inventory turnover. (Inventory on 12/31/18 was $312.) |
(c) | | Profit margin ratio. |
(d) | | Return on assets. (Assets on 12/31/18 were $1,878.) |
(e) | | Return on common stockholders’ equity. (Stockholders' equity on12/31/18 was $882.) |
(f) | | Debt to assets ratio. |
(g) | | Times interest earned. |