Practice Do It! Review 01 The condensed financial statements of Ivanhoe Company for the years 2019 and 2020 are presented as follows. (Amounts in thousands.) IVANHOE COMPANY Balance Sheets December 31 2020 2019 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 640 570 Inventory 530 460 Prepaid expenses 120 160 Total current assets 1,620 1,550 Investments 180 180 Property, plant, and equipment 420 380 Intangibles and other assets 530 510 Total assets $2,750 $2,620 Current liabilities $1,070 $960 Long-term liabilities 480 450 Stockholders' equity-common 1,200 1,210 Total liabilities and stockholders' equity $2,750 $2,620 2019 $3,530 IVANHOE COMPANY Income Statements For the Years Ended December 31 2020 Sales revenue $3,870 Costs and expenses Cost of goods sold 1,125 Selling & administrative expenses 2,400 Interest expense 25 Total costs and expenses 3.550 Income before income taxes 320 96 Income tax expense $ 224 Net income 1,060 2,330 20 3,410 120 36 $ 84 Compute the following ration for 2020 and 2019. (Round current ratio and inventory turnover to 2 decimal places, 6.6, 1.83 and all other answers to 1 decimal place, .. 1.8 or 12.6%) (a) Current ratio (b) Inventory turnover. (Inventory on 12/31/18, was $430) (c) Profit margin. (d) Return on assets. (Assets on 12/31/18, were $2,550.) (e) Return on common stockholders' equity. (Stockholders' equity on 12/31/18, was $920.) () Debt to assets ratio. (0) Times Interest earned 2020 2019 (a) Current ratio :1 :1 (b) Inventory turnover times times (c) Profit margin % % (d) Return on assets % % (e) Return on common stockholders' equity % % (f) Debt to assets ratio % % (9) Times interest earned times times