Harmony Corporation reported these figures:

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Harmony Corporation has 2,000,000 shares of common stock outstanding. Its stock has traded recently at $ 33.30 per share. You would like to gain a better understanding of Harmony Corporation's financial position. Assume all sales are on credit.Read the requirement

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a. Inventory turnover

Enter the formula on the first line, then calculate the inventory turnover on the next line. (Enter amounts in thousands as provided to you in the problem statement. Round your answer to one decimal place.)

	/		=	Inventory turnover
	/		=

DATA

BALANCE SHEET

Harmony Corporation
Balance Sheets
December 31, 2017 and 2016
(amounts in thousands)
	2017	2016
Assets
Current assets:
Cash	$3,110	$2,200
Accounts receivables	2,500	2,420
Inventory	2,000	1,400
Other current assets	1,850	2,280
Total current assets	$9,460	$8,300
Other assets	23,000	16,500
Total assets	$32,460	$24,800
Liabilities
Total current liabilities	$11,000	$10,000
Long-term liabilities	11,460	9,800
Total liabilities	$22,460	$19,800
Stockholders' equity
Total common stockholders' equity	10,000	5,000
Total liabilities and equity	$32,460	$24,800

DATA

INCOME STATEMEMT

Harmony Corporation

Income Statement

For the Year Ended December 31, 2017

(amounts in thousands)

2017

Sales revenue

$14,965

Less: Cost of goods sold

5,270

Gross profit

$9,695

Less: Operating expenses

7,395

Operating income

$2,300

Less: Interest expense

100

Income before income taxes

$2,200

Less: Income tax expense

400

Net income

$1,800

REQUIREMENT

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