Cordillera Carson Company has the following balance sheet and income

statement for 20X2 (in thousands):

Notes

: (i) current period's depreciation is $480; (ii) ending inventory for 20X1

was $1,800.

On the basis of this information, compute (a) the current ratio, (b) the acid-

test ratio, (c) the average collection period, (d) the inventory turnover ratio,

(e) the debt-to-net-worth ratio, (f ) the long-term debt-to-total-capitalization

ratio, (g) the gross profit margin, (h) the net profit margin, and (i) the return

on equity.

3.

Selected financial ratios for RMN, Incorporated, are as follows:

7

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