Exercise 13-13 The condensed financial statements of Sunland Company for the years 2021 and 2022 are presented below. SUNLAND COMPANY Balance Sheets December 31 (in thousands) 2022 2021 Current assets Cash and cash equivalents Accounts receivable (net) Inventory $330 570 $360 500 600 530 Prepaid expenses 130 160 Total current assets 1,630 1,550 410 380 Property, plant, and equipment (net) Investments 110 110 Intangibles and other assets 530 510 Total assets $2,680 $2,550 $920 $890 Current liabilities Long-term liabilities 620 520 Stockholders' equity-common 1,140 1,140 Total liabilities and stockholders' equity $2,680 $2,550 SUNLAND COMPANY Income Statements For the Year Ended December 31 (in thousands 2022 2021 Sales revenue $3,940 $3,600 Costs and expenses Cost of goods sold 1,070 990 Selling & administrative expenses 2,400 2,330 Interest expense 10 20 Total costs and expenses 3,480 3,340 Income before income taxes 460 260 Income tax expense 184 104 Net income $ 276 $ 156 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 $450.) (C) Profit margin. (d) Return on assets. (Assets on December 31, 2020, were $2,350.) (e) Return on common stockholders' equity. (Equity on December 31, 2020, was $930.) (f) Debt to assets ratio. (g) Times interest earned. 2022 2021 Current ratio. :1 :1 Inventory turnover. Profit margin. % % Return on assets. % % Return on common stockholders' equity. % % Debt to assets ratio. % % Times interest earned. times times