Net sales Expenses Cost of goods sold Selling and administrative expenses Interest expense Total expenses Income before income taxes Income tax expense Net income (a) (b) (c) (d) (e) (f) 60 2027 Debt to assets ratio. $3,830 $3,490 1,092 Times interest earned. 2,400 10 3,502 328 131 2026 $197 810 2,330 20 3,160 330 Compute the following ratios for 2027 and 2026. (Round current ratio and inventory turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%.) 132 $198 Current ratio. Inventory turnover. (Inventory on December 31, 2025, was $390.) h Profit margin. Return on assets. (Assets on December 31, 2025, were $2,430.) Return on common stockholders' equity. (Stockholders' equity-common on December 31, 2025, was $930.)

The condensed financial statements of Sheridan Company for the years 2026 and 2027 are as follows