FreedomFreedom Corporation has 3 comma 200 comma 0003,200,000 shares of common stock outstanding. Its stock has traded recently at $ 27.00$27.00 per share. You would like to gain a better understanding of FreedomFreedom Corporation's financial position. Assume all sales are on credit.

Freedom Corporation
Balance Sheets
December 31, 2017 and 2016
(amounts in thousands)
	2017	2016
Assets
Current assets:
Cash	$5,120	$2,800
Accounts receivables	2,300	1,600
Inventory	1,800	1,200
Other current assets	3,240	2,800
Total current assets	$12,460	$8,400
Other assets	22,000	18,500
Total assets	$34,460	$26,900
Liabilities
Total current liabilities	$14,000	$13,000
Long-term liabilities	4,960	5,400
Total liabilities	$18,960	$18,400
Stockholders' equity
Total common stockholders' equity	15,500	8,500
Total liabilities and equity	$34,460	$26,900

PrintDone

Freedom Corporation
Income Statement
For the Year Ended December 31, 2017
(amounts in thousands)
	2017
Sales revenue	$14,235
Less: Cost of goods sold	4,350
Gross profit	$9,885
Less: Operating expenses	885
Operating income	$9,000
Less: Interest expense	400
Income before income taxes	$8,600
Less: Income tax expense	6,200
Net income	$2,400

Calculate the following ratios for

20172017

and interpret the results:

a.	Inventory turnover
b.	Days' sales in receivables
c.	Acid-test ratio
d.	Times-interest-earned
e.	Gross profit percentage
f.	Operating income percentage
g.	Return on stockholders' equity
h.	Earnings per share
i.	Price/earnings ratio