The condensed financial statements of Murawski Company for the years 2024 and 2025 are presented as follows.
Question:
The condensed financial statements of Murawski Company for the years 2024 and 2025 are presented as follows. (Amounts in thousands.)
Compute the following ratios for 2025 and 2024.
a. Current ratio.
b. Inventory turnover. (Inventory on \(12 / 31 / 23\) was \(\$ 340\).)
c. Profit margin.
d. Return on assets. (Assets on \(12 / 31 / 23\) were \(\$ 1,900\).)
e. Return on common stockholders' equity. (Stockholders' equity-common on 12/31/23 was \(\$ 900\).)
f. Debt to assets ratio.
g. Times interest earned.
Transcribed Image Text:
Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments Murawski Company Balance Sheets December 31 Property, plant, and equipment (net) Intangibles and other assets Total assets Current liabilities Long-term liabilities Stockholders' equity-common Total liabilities and stockholders' equity 2025 $ 330 470 460 120 1,380 10 420 530 $2,340 $ 900 410 1,030 $2,340 2024 $ 360 400 390 160 1,310 10 380 510 $2,210 $ 790 380 1,040 $2,210
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a Current ratio 1380 900 1310 790 b Inventory turnover 955 460 390 2 890 390 340 2 c Profit ...View the full answer
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Financial Accounting Tools For Business Decision Making
ISBN: 9781119791089
10th Edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Jill E. Mitchell
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