Prior Company's condensed financial statements provide the following information. PRIOR COMPANY Balance Sheet Dec. 31, 2025 Dec. 31, 2024 Cash Accounts receivable (net) $52,000 $60,000 198,000 80,000 Short-term investments Inventory 80,000 40,000 440,000 360,000 Prepaid expenses 3,000 7,000 Total current assets $773,000 $547,000 Property, plant, and equipment (net) 857,000 853,000 Total assets $1,630,000 $1,400,000 Current liabilities 240,000 160,000 Bonds payable 400,000 400,000 Common stockholders' equity 990,000 840,000 Total liabilities and stockholders' equity $1,630,000 $1,400,000 Income Statement For the Year Ended 2025 Sales Cost of goods sold $1,640,000 (800,000) Sales Cost of goods sold $1,640,000 (800,000) Gross profit 840,000 Selling and administrative expenses (440,000) Interest expense (40,000) Net income $360,000 (1) Current ratio at December 31 3.22 times (2) Acid-test ratio at December 31 (3) Accounts receivable turnover (4) Inventory turnover (5) Return on assets 1.38 times 11.8 times 2 times 23.76 % (6) Profit margin on sales 21.95 % (b) Prepare a brief evaluation of the financial condition of Prior Company and of the adequacy of its profits. BIU T T Ix E 99 T T* SUPPO 0 Word(s)