Financial Statement Analysis Case a Sandhill Inc. manufactures a variety of consumer products. The company's founders have run the company for 30 years and are now interested in retiring. Consequently, they are seeking a purchaser who will continue its operations, and a group of investors, Morgan Inc., is looking into the acquisition of Sandhill. To evaluate its financial stability and operating efficiency, Sandhill was requested to provide the latest financial statements and selected financial ratios. Summary information provided by Sandhill is as follows. Sandhill Inc. Income Statement For the Year Ended November 30, 2021 (in thousands) Sales (net) $ 30,430 Interest income 430 Total revenue 30,860 Costs and expenses Cost of goods sold 17,530 Selling and administrative expenses Depreciation and amortization expense 1,820 Interest expense 830 Total costs and expenses 23,660 Income before taxes 7,200 Income taxes 2,880 Net income $ 4,320 3,480 Sandhill Inc. Balance Sheet As of November 30 (in thousands) 2021 Cash $ 330 Short-term investments (at cost) 230 Accounts receivable (net) 3,130 Inventory 5,930 Total current assets 9,620 Property, plant, & equipment (net) 7,030 Total assets $ 16,650 Accounts payable $ 3,630 Income taxes payable 830 Accrued expenses 1,630 Total current liabilities 6,090 Long-term debt 1,930 Total liabilities 8,020 Common stock (51 par value) 2,630 Paid-in capital in excess of par 930 Retained earnings 5,070 Total stockholders' equity 8,630 Total liabilities and stockholders' equity $ 16,650 2020 $ 430 130 2,830 5,330 8,720 6,930 $ 15,650 $ 3,330 730 1,330 5,390 1,730 7,120 2,630 930 4,970 8,530 $ 15,650 Selected Financial Ratios Sandhill Inc. 2020 2019 Current ratio 1.62 1.63 Acid-test ratio 0.63 0.61 Times interest earned 8.48 8.43 Profit margin on sales 13.13 % 12.03 % Asset turnover 1.77 1.76 Inventory turnover 3.1 3.14 Current Industry Average 1.56 0.66 8.38 12.93 % 1.77 3.11 (a) Calculate a new set of ratios for the fiscal year 2021 for Sandhill based on the financial statements presented. (Round answers to 2 decimal places, e.g. 52.75 or 52.75%.) Current ratio : 1 Acid-test ratio : 1 Times interest earned Profit margin on sales % Asset turnover times Inventory turnover times Click if you would like to Show Work for this question: Open Show Work