Question 11

The condensed financial statements of Ness Company for the years 2019 and 2020 are presented below.

Ness Company Balance Sheets December 31 (in thousands)
		2020		2019
Current assets
Cash and cash equivalents		$290		$360
Accounts receivable (net)		480		410
Inventory		460		400
Prepaid expenses		140		170
Total current assets		1,370		1,340
Property, plant, and equipment (net)		440		380
Investments		1		10
Intangibles and other assets		530		480
Total assets		$2,341		$2,210
Current liabilities		$850		$730
Long-term liabilities		471		460
Stockholders equitycommon		1,020		1,020
Total liabilities and stockholders equity		$2,341		$2,210

Ness Company Income Statements For the Years Ended December 31 (in thousands)
		2020		2019
Sales revenue		$3,830		$3,430
Costs and expenses
Cost of goods sold		980		850
Selling & administrative expenses		2,350		2,280
Interest expense		10		20
Total costs and expenses		3,340		3,150
Income before income taxes		490		280
Income tax expense		196		112
Net income		$294		$168

Compute the following ratios for 2020 and 2019. Inventory on December 31, 2018, was $350. Assets on December 31, 2018, were $1,920. Equity on December 31, 2018, was $930. (Round current ratio and inventory turnover to 2 decimal places, e.g. 15.25. Round other answers to 1 decimal place, e.g. 15.2 or 15.2%.)

				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			%			%
(g)		Times interest earned			times			times