2016 $3,580 975 PHAROAH COMPANY Income Statements For the Year Ended December 31 2017 Sales revenue $3,920 Costs and expenses Cost of goods sold Selling & administrative expenses 2,400 Interest expense Total costs and expenses 3,400 Income before income taxes 520 Income tax expense 156 Net income $ 364 910 2,330 3,260 320 96 $ 224 Compute the following ratios for 2017 and 2016. (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 12/31/15, was $440.) (c) Profit margin. (d) Return on assets. (Assets on 12/31/15, were $2,870.) (e) Return on common stockholders' equity. (Stockholders' equity on 12/31/15, was $920.) ( Debt to assets ratio. (9) Times interest earned. Do It! Review 13-3 The condensed financial statements of Pharoah Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.) PHAROAH COMPANY Balance Sheets December 31 2017 2016 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments Property, plant, and equipment (net) Intangibles and other assets $330 490 580 120 $360 420 510 160 1,520 1,450 30 30 420 530 $2,500 Total assets Current liabilities Long-term liabilities Stockholders' equity-common Total liabilities and stockholders' equity $920 530 1,050 380 510 2,370 $810 500 1,060 $2,370 $2,500