CES Practice Do It! Review 01 The condensed financial statements of Cullumber Company for the years 2019 and 2020 are presented as follows. (An A CULLUMBER COMPANY Balance Sheets December 31 2020 2019 $360 600 590 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments Property, plant, and equipment Intangibles and other assets $330 670 660 120 1,780 210 420 530 160 1,710 210 380 510 $2,810 $2,940 Total assets Current liabilities Long-term liabilities Stockholders' equity-common Total liabilities and stockholders' equity $1,100 610 1,230 $2,940 $990 580 1,240 $2,810 CULLUMBER COMPANY Total llabilities dilu SLUCRIIUJ Cyuicy 2019 $3,660 CULLUMBER COMPANY Income Statements For the Years Ended December 31 2020 Sales revenue $4,000 Costs and expenses Cost of goods sold 1,155 Selling & administrative expenses 2,400 Interest expense 25 Total costs and expenses 3,580 Income before income taxes 420 Income tax expense 126 1,090 2,330 20 3,440 220 66 $ 294 $ 154 Net income Income tax expense 294 $154 Net income Compute the following ratios for 2020 and 2019. (Round current ratio and inventory turnover to 2 decimal places, e. decimal place, e.g. 1.8 or 12.6%) (a) Current ratio. (b) Inventory turnover. (Inventory on 12/31/18, was $390.) (c) Profit margin. (d) Return on assets. (Assets on 12/31/18, were $2,070.) (e) Return on common stockholders' equity. (Stockholders' equity on 12/31/18, was $990.) () Debt to assets ratio. (9) Times interest earned. 2019