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2022 2021 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 500 430 Inventory 660 590 Prepaid expenses 120 160 Total current
2022 2021 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 500 430 Inventory 660 590 Prepaid expenses 120 160 Total current assets 1,610 1,540 Investments 40 40 Property, plant, and equipment (net) 420 380 Intangibles and other assets 530 510 Total assets $2,600 $2,470 Current liabilities $930 $820 Long-term liabilities 610 580 Stockholders' equity-common 1,060 1,070 Total liabilities and stockholders' equity $2,600 $2.470 SANDHILL CO. Income Statements For the Year Ended December 31 2022 2021 $4,000 $3,660 Sales revenue Costs and expenses Cost of goods sold 985 920 Selling & administrative expenses 2,400 2,330 Interest expense 25 20 Total costs and expenses 3,410 3,270 Income before income taxes 590 390 Income tax expense 177 117 Net income $413 $273 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 12/31/20, was $440.) (c) Profit margin. (d) Return on assets. (Assets on 12/31/20, were $2,670.) (e) Return on common stockholders' equity. (Stockholders' equity on 12/31/20, was $990.) (f) Debt to assets ratio. (g) Times interest earned.
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