E14-20A Calculate ratios (Learning Objective 4) Harmony Corporation reported these figures: Harmony Corporation Income Statement For the Year Ended December 31, 2014 (amounts in thousands) 2013 $ $ $ 1 Harmony Corporation 2 Balance Sheets 3 December 31, 2014 and 2013 4 (amounts in thousands) 5 2014 6 Assets 7 Current assets: 8 Cash S 5,700 S 9 Accounts receivable 2,100 10 Inventory 1,000 11 Other current assets 3,950 12 Total current assets S 12.750 S 13 Other assets 23,500 14 Total assets S 36 250 15 16 Liabilities 17 Total current liabilities IS 15 000 $ 18 Long-term liabilities 6,250 19 Total liabilities S 21250 S 20 21 Stockholders' equity 22 Total common stockholders equity 15.000 23 24 Total liabilities and equity $ 36 250$ 25 Sales revenues Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Interest expense Income before income taxes Less: Income tax expense Net income 2.700 1,860 800 2.640 8,000 20,000 28.000 2014 13.140 1980 11160 660 10.500 500 10,000 7.000 3.000 $ $ 12.500 5,500 18,000 10,000 28,000 Harmony has 3,125 shares of common stock outstanding. Its stock has traded recently at $31.20 per share. You would like to gain a better understanding of Harmony's financial position. Calculate the following ratios for 2014 and interpret the results: a. Inventory turnover b. Days' sales in receivables c. Acid-test ratio d. Times-interest-earned e. Return on stockholders' equity f. Earnings per share g. Price/earnings ratio