Question
Current Attempt in Progress The condensed financial statements of Oriole Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.) ORIOLE
Current Attempt in Progress
The condensed financial statements of Oriole Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.)
ORIOLE COMPANY Balance Sheets December 31 | ||||
---|---|---|---|---|
2017 | 2016 | |||
Current assets | ||||
Cash and cash equivalents | $330 | $360 | ||
Accounts receivable (net) | 640 | 570 | ||
Inventory | 540 | 470 | ||
Prepaid expenses | 120 | 160 | ||
Total current assets | 1,630 | 1,560 | ||
Investments | 180 | 180 | ||
Property, plant, and equipment (net) | 420 | 380 | ||
Intangibles and other assets | 530 | 510 | ||
Total assets | $2,760 | $2,630 | ||
Current liabilities | $1,070 | $960 | ||
Long-term liabilities | 490 | 460 | ||
Stockholders equitycommon | 1,200 | 1,210 | ||
Total liabilities and stockholders equity | $2,760 | $2,630 |
ORIOLE COMPANY Income Statements For the Year Ended December 31 | ||||
---|---|---|---|---|
2017 | 2016 | |||
Sales revenue | $3,880 | $3,540 | ||
Costs and expenses | ||||
Cost of goods sold | 1,125 | 1,060 | ||
Selling & administrative expenses | 2,400 | 2,330 | ||
Interest expense | 25 | 20 | ||
Total costs and expenses | 3,550 | 3,410 | ||
Income before income taxes | 330 | 130 | ||
Income tax expense | 99 | 39 | ||
Net income | $ 231 | $ 91 |
Compute the following ratios for 2017 and 2016. (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 12/31/15, was $360.) | |
(c) | Profit margin. | |
(d) | Return on assets. (Assets on 12/31/15, were $1,910.) | |
(e) | Return on common stockholders equity. (Stockholders equity on 12/31/15, was $920.) | |
(f) | Debt to assets ratio. | |
(g) | Times interest earned. |
2017 | 2016 | |||||
---|---|---|---|---|---|---|
Current ratio. | Enter a number rounded to 2 decimal places | :1 | Enter a number rounded to 2 decimal places | :1 | ||
Inventory turnover. | Enter a number rounded to 2 decimal places | Enter a number rounded to 2 decimal places | ||||
Profit margin. | Enter percentages rounded to 1 decimal place | % | Enter percentages rounded to 1 decimal place | % | ||
Return on assets. | Enter percentages rounded to 1 decimal place | % | Enter percentages rounded to 1 decimal place | % | ||
Return on common stockholders equity. | Enter percentages rounded to 1 decimal place | % | Enter percentages rounded to 1 decimal place | % | ||
Debt to assets ratio. | Enter percentages rounded to 1 decimal place | % | Enter percentages rounded to 1 decimal place | % | ||
Times interest earned. | Enter a number rounded to 1 decimal place | times | Enter a number rounded to 1 decimal place | times |
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