K Freedom Corporation reported these figures (Click the icon to view the balance sheet) (Click the icon to view the income statement.) Freedom Corporation has 2,500,000 shares of common stock outstanding. Its stock has traded recently at $34.50 per share. You would like to gain a better understanding of Freedom Corporation's financial position. Assume all sales are on credit correct Read the requirement 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) Cost of goods sold Average inventory $ 1,800 Inventory turnover 3.0 Balance sheet 1 2 3 4 5 6 B C A Freedom Corporation Balance Sheets December 31, 2020 and 2019 (amounts in thousands) Assets 2020 2019 7 Current assets: 8 Cash 9 Accounts receivables 10 Inventory 69 $ 3,000 $ 2,300 2,400 2,200 2,100 1,500 11 Other current assets. 1,500 2,250 12 Total current assets $ 9,000 $ 8,250 13 Other assets 21,000 16,750 14 Total assets EA $ 30,000 $ 25,000 15 - 15 16 Liabilities $ 10,000 $ 9,000 7,000 6,000 $ EA 17,000 $ 15,000 17 Total current liabilities 18 Long-term liabilities 19 Total liabilities 20 22 21 Stockholders' equity 22 Total common stockholders' equity 23 24 Total liabilities and equity 13,000 10,000 $ 30,000 $ 25,000 Read the requirement. Income statement 1 2 3 4 A B Freedom Corporation Income Statement For the Year Ended December 31, 2020 (amounts in thousands) - n the next lin decimal plac Inventory tu 3.0 5 2020 6 Sales revenues $ 14,600 7 Less: Cost of goods sold 5,400 8 Gross profit $ SA 9,200 9 Less: Operating expenses 4,500 10 Operating income $ 4,700 11 Less: Interest expense 200 12 Income before income taxes $ 4,500 Clear all 13 Less: Income tax expense 2,200 $ 2,300 14 Net income Requirement Calculate the following ratios for 2020 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 Print Done -