Exercise 13-13

The condensed financial statements of Elliott Company for the years 2013 and 2014 are presented below.

ELLIOTT COMPANY Balance Sheets December 31 (in thousands)
2014	2013
Current assets
Cash and cash equivalents	$330	$360
Accounts receivable (net)	618	548
Inventory	650	580
Prepaid expenses	130	160
Total current assets	1,728	1,648
Property, plant, and equipment (net)	410	380
Investments	158	158
Intangibles and other assets	530	510
Total assets	$2,826	$2,696
Current liabilities	$968	$938
Long-term liabilities	670	570
Stockholders equitycommon	1,188	1,188
Total liabilities and stockholders equity	$2,826	$2,696

ELLIOTT COMPANY Income Statements For the Year Ended December 31 (in thousands)
2014	2013
Sales revenue	$3,990	$3,650
Costs and expenses
Cost of goods sold	1,118	1,038
Selling & administrative expenses	2,400	2,330
Interest expense	10	20
Total costs and expenses	3,528	3,388
Income before income taxes	462	262
Income tax expense	185	105
Net income	$277	$157

Compute the following ratios for 2014 and 2013. (Round all answers to 2 decimal places, e.g. 1.83 or 12.61%.)

(a)	Current ratio.
(b)	Inventory turnover. (Inventory on December 31, 2012, was $400.)
(c)	Profit margin.
(d)	Return on assets. (Assets on December 31, 2012, were $2,160.)
(e)	Return on common stockholders equity. (Equity on December 31, 2012, was $980.)
(f)	Debt to assets ratio.
(g)	Times interest earned.

2014	2013
Current ratio.	1.78	:1	1.75	:1
Inventory turnover.	1.72	1.89
Profit margin.		%		%
Return on assets.		%		%
Return on common stockholders equity.		%		%
Debt to assets ratio.		%		%
Times interest earned.		times