Exercise 14-13 The condensed financial statements of Ness Company for the years 2019 and 2020 are presented below. Ness Company Balance Sheets December 31 (in thousands) 2020 2019 $290 460 460 140 1,350 370 $390 380 410 150 1,330 360 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 *** *** |** | 560 $2,281 $900 361 1,020 $2,281 10 550 $2,250 $720 510 1,020 $2,250 Ness Company Income Statements For the Years Ended December 31 (in thousands 2020 2019 Sales revenue $3,720 $3,470 Costs and expenses Cost of goods sold 1,000 930 Selling & administrative expenses 2,420 2,350 Interest expense 10 20 Total costs and expenses 3,430 3,300 Income before income taxes Income tax expense 116 68 Net income $174 $102 290 Compute the following ratios for 2020 and 2019. Inventory on December 31, 2018, was $300. Assets on December 31, 2018, were $1,890. Equity on December 31, 2018, was $950. (Round current ratio and inventory turnover to 2 decimal places, e.g. 15.25. Round other answers to 1 decimal place, e.g. 15.2 or 15.2%.) Compute the following ratios for 2020 and 2019. Inventory on December 31, 2018, was $300. Assets on December 31, 2018, were $1,890. Equity on December 31, 2018, was $950. (Round current ratio and inventory turnover to 2 decimal places, e.g. 15.25. Round other answers to 1 decimal place, e.g. 15.2 or 15.2%.) 2020 2019 (a) Current ratio 1.50 :1 1.85:1 (b) Inventory turnover times times (c) Profit margin 4.7 % - 2.9% (d) Return on assets (e) Return on common stockholders' equity 17.0% 10.0 % (1) Debt to assets ratio (9) Times interest earned times times Click if you would like to Show Work for this question: Open Show Work