Condensed statement of financial position and income statement data for Paver Ltd. are shown below: 2016 PAVER LTD. Statement of Financial Position December 31 (in thousands) 2018 2017 Assets Current assets Cash $31 $79 Accounts receivable 897 696 Inventory 1,197 798 Total current assets 2,125 1,573 Property, plant, and equipment (net) 4,121 3,834 Total assets $6,246 $5,407 Liabilities and Shareholders' Equity Liabilities Current liabilities $600 $550 Non-current liabilities 3,089 2,319 Total liabilities 3,689 2,869 Shareholders' equity Common shares 996 996 Retained earnings 1,561 1,542 Total shareholders' equity 2,557 2,538 Total liabilities and shareholders' equity $6,246 $5,407 $201 500 496 1,197 3,196 $4,393 $500 1,497 1,997 996 1,400 2,396 $4,393 PAVER LTD. Income Statement Year Ended December 31 (in thousands) 2018 2017 2016 Sales (all on credit) $4,482 $3,961 $3,629 Cost of goods sold 2,512 2,099 1,788 Gross profit 1,970 1,862 1,841 Operating expenses 1,438 1,471 1,493 Income from operations 532 391 348 Interest expense 191 Income before income tax 260 279 Income tax expense Net income $256 $195 $209 131 69 341 65 70 Calculate the receivables turnover ratio, inventory turnover ratio, and current ratio for all three years. Assume that the accounts receivable and inventory balances at the end of 2015 were equal to the balances at the end of 2016. The company does not have an allowance for doubtful accounts and all sales are on credit. (Round answers to 1 decimal place, e.g. 5.2%.) 2016 2017 2018 Receivables turnover times times times times Inventory turnover times times Current ratio LINK TO TEXT LINK TO TEXT LINK TO TEXT Calculate the gross profit margin for each year. (Round answers to 1 decimal place, e.g. 5.796.) 2016 2017 2018 Gross profit margin LINK TO TEXT LINK TO TEXT LINK TO TEXT Calculate the profit margin ratio. (Round answers to 1 decimal place, e.g. 5.2%.) 2016 2017 2018 Profit margin LINK TO TEXT LINK TO TEXT LINK TO TEXT Calculate the debt to total assets ratio and the times Interest earned ratio for all three years. (Round answers to I decimal place, e.g. 5.2 or 5.29.) 2016 2017 2018 Debt to total assets Times interest eamed times times times The company paid all dividends as soon as they were declared and has only issued common shares. There are no preferred shares, Retained earnings at the beginning of 2016 were $1.2 million. Calculate the cash dividends declared and dividend payout ratio for each year. (Round payout ratio to 1 decimal place, e.g. 5.296.) 2016 2017 2018 Dividends declared (in thousands) $ Payout ratio LINK TO TEXT LINK TO TEXTLINK TO TEXT Calculate the asset turnover for each of the three years. Assume that total assets at the end of 2015 were equal to total assets at the end of 2016. Multiply the asset turnover for each year by the profit margin for each year from part (c) above to determine the return on assets for each year. (Round asset turnover to 2 decimal palces, 01.05.26 and return on assets to 1 decimal place, c.q.5.20.) 2016 2017 2018 Asset turnover times times times Return on assets LINK TO TEXT LINK TO TEXT LINK TO TEXT Calculate the return on common shareholders' equity for each year. Assume that common shareholders' equity at the end of 2015 was equal to that amount for 2016. (Round answers to I decimal place, e.g. 5.29.) 2016 2017 2018 Return on common shareholders' equity
