BE13.10 (LO 3), AP Suppose these selected condensed data are taken from recent balance sheets of Bob Evans Farms (in thousands).

2022 2021

Cash $13,606 $7,669

Accounts receivable (net) 23,045 19,951

Inventory 31,087 31,345

Other current assets 12,522 11,909

Total current assets $ 80,260 $ 70,874

Total current liabilities $245,805 $326,203

Compute the current ratio for each year and comment on your results.

RatioSolutionFormulaProfit MarginNet Income/Net SalesAsset TurnoverNet Sales/Avg Total AssetsReturn on AssetsNet Income/Average Total AssetsReturn on Common Stockholders' Equity(Net Income-Preferred Dividends)/Average Common EquityGross Profit Rate(Sales-COGS)/Sales