Exercise 13-13 Partially correct answer. Your answer is partially correct. Try again. The condensed financial statements of Cullumber Company for the years 2021 and 2022 are presented below. CULLUMBER COMPANY Balance Sheets December 31 (in thousands) 2022 2021 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 650 580 Inventory 580 510 Prepaid expenses 130 160 Total current assets 1,690 1,610 Property, plant, and equipment (net) 410 380 Investments 190 190 Intangibles and other assets 530 510 Total assets $2,820 $2,690 Current liabilities $1,000 $970 Long-term liabilities 600 500 Stockholders equitycommon 1,220 1,220 Total liabilities and stockholders equity $2,820 $2,690 CULLUMBER COMPANY Income Statements For the Year Ended December 31 (in thousands) 2022 2021 Sales revenue $3,920 $3,580 Costs and expenses Cost of goods sold 1,150 1,070 Selling & administrative expenses 2,400 2,330 Interest expense 10 20 Total costs and expenses 3,560 3,420 Income before income taxes 360 160 Income tax expense 144 64 Net income $ 216 $ 96 Compute the following ratios for 2022 and 2021. (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 December 31, 2020, was $350.) (c) Profit margin. (d) Return on assets. (Assets on December 31, 2020, were $2,700.) (e) Return on common stockholders equity. (Equity on December 31, 2020, was $980.) (f) Debt to assets ratio. (g) Times interest earned.

Exercise 13-13 Your answer is partially correct. Try again. The condensed financial statements of Cuflumber Company for the years 2021 and 2022 are presented below. CULLUMBER COMPANY Balance Sheets December 31 (in thousands) 2022 2021 $330 $360 580 650 580 510 130 160 1,690 410 1,610 380 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Property, plant, and equipment (net) Investments Intangibles and other assets Total assets Current liabilities Long-term liabilities Stockholders' equity-common Total liabilities and stockholders' equity 190 530 190 510 $2,820 $1.000 600 1,220 $2.820 $2,690 $970 500 1,220 $2,690 CULLUMBER COMPANY Income Statements For the Year Ended December 31 (in thousands) 2022 2021 Sales revenue $3,920 $3,580 Costs and expenses Cost of goods sold 1,150 1,070 Selling & administrative expenses 2,400 2,330 Interest expense 10 20 Total costs and expenses 3,560 3,420 Income before income taxes 360 160 Income tax expense 144 64 Net income $ 216 96 Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decimal places, eg 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%.) (a) Current ratio. () Inventory turnover. (Inventory on December 31, 2020, was $350.) (c) Profit margin. (d) Return on assets. (Assets on December 31, 2020, were $2,700.) (e) Return on common stockholders' equity. (Equity on December 31, 2020, was $980.) (1) Debt to assets ratio. (9) Times interest earned. 2022 2021 Current ratio. 1.71:1 1.651 Inventory turnover Profit margin. 9 Return on assets. Return on common stockholders' equity. 90 Debt to assets ratio. 2.12 2.11% Times interest earned. 8 times 36 | Limes