Practice Do It! Review 01 The condensed financial statements of Crane Company for the years 2019 and 2020 are presented as follows. (Amounts in thousands.) CRANE COMPANY Balance Sheets December 31 2020 2019 Current assets $330 $360 Cash and cash equivalents Accounts receivable (net) Inventory 570 500 580 510 Prepaid expenses 120 160 Total current assets 1,530 1,600 110 Investments 110 420 380 Property, plant, and equipment Intangibles and other assets 530 510 Total assets $2,660 $2,530 Current liabilities $1,000 $890 Long-term liabilities 530 500 Stockholders' equity-common 1,130 1,140 Total liabilities and stockholders' equity $2,660 $2,530 CRANE COMPANY Income Statements For the Years Ended December 31 2020 2019 $3,920 $3,580 Sales revenue Costs and expenses Cost of goods sold Selling & administrative expenses 1,055 2,400 990 2,330 20 25 Interest expense Total costs and expenses 3,480 Income before income taxes 440 3,340 240 72 Income tax expense 132 Net income $ 308 $ 168 Compute the following ratios for 2020 and 2019. (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%.) (a) (b) (c) (d) (e) (f) (9) Current ratio. Inventory turnover. (Inventory on 12/31/18, was $450.) Profit margin. Return on assets. (Assets on 12/31/18, were $2,670.) Return on common stockholders' equity. (Stockholders' equity on 12/31/18, was $940.) Debt to assets ratio. Times interest earned. 2020 2019 (a) Current ratio 1.6 :1 1.7 :1 (b) Inventory turnover 1.82 times 1.94 times (c) Profit margin % % (d) Return on assets % % (e) Return on common stockholders' equity % % (f) Debt to assets ratio % % (g) Times interest earned times times