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Morksen Corp. has enjoyed modest success in penetrating the personal electronic devices market since it began operations a few rears ago. A new line of

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Morksen Corp. has enjoyed modest success in penetrating the personal electronic devices market since it began operations a few rears ago. A new line of devices introduced recently has been well received by customers. However, the company president, who is nowledgeable about electronics but not accounting, is concerned about the future of the company. Although the company has a line of credit with the local bank, it currently needs cash to continue operations. The bank wants more nformation before it extends the company's credit line. The president has asked you, as the company's chief accountant, to evaluate he company's performance by using appropriate financial statement analysis, and to recommend possible courses of action for the company. In particular, the president wants to know how the company can obtain additional cash. Summary financial statements for the ast three years are available below. MORKSEN CORP. Consolidated Statements of Financial Position At December 31 , (in thousands of dollars) Year 8 Year 7 Year 6 Assets Current assets Cash Short-term investments Accounts receivable Merchandise inventory Total current assets Property, plant, and equipment Land Buildings and equipment Less: Accumulated depreciation Net property, plant, and equipment Total assets Liabilities and Shareholders' Equity Current liabilities Bank loan Accounts payable Other liabilities Income tax payable Total current liabilities Shareholders' equity Common shares Retained earnings Other comprehensive incotie Total shareholders' equity Total liabilities and shareholders' equity 4,00026,0004,00030,00026,0002,0020,00018,00 21,0608,94022,5607,440$49,7205,760$42,24014,240 Required: 1. Compute the following ratios for the past two years. (Do not round intermediate calculations. Round the final answers to places.)

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