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Question: 1) The condensed financial statements of KLM Company for 2015 and 2014 are presented below (100 points). Instructions: Compute the following ratios for KLM

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Question: 1) The condensed financial statements of KLM Company for 2015 and 2014 are presented below (100 points). Instructions: Compute the following ratios for KLM for 2015 and discuss your findings ( 2014 values are provided for comparison). 1. Liquidity: a) Current ratio (2014:0.75:1) b) Inventory turnover (2014:6.7 times) 2. Solvency: a) Debt to assets ratio (2014:84%) b) Times interest earned (2014: 6.1 times) 3. Profitability: a) Return on assets (2014:7.1%) b) Profit margin (2014: 6.7 times) e) Return on common stockholders' equity (2014: 45\%)

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