RNA Inc. manufactures a variety of consumer products. The companys founders have run the company for 30 years and are now interested in retiring. Consequently, they are seeking a purchaser who will continue its operations, and a group of investors, Morgan Inc., is looking into the acquisition of RNA. To evaluate its financial stability and operating efficiency, RNA was requested to provide the latest financial statements and selected financial ratios. Summary information provided by RNA is as follows. RNA INC. INCOME STATEMENT FOR THE YEAR ENDED NOVEMBER 30, 2015 (IN THOUSANDS) Sales (net) $ 30,440 Interest income 440 Total revenue 30,880 Costs and expenses Cost of goods sold 17,540 Selling and administrative expenses 3,490 Depreciation and amortization expense 1,830 Interest expense 840 Total costs and expenses 23,700 Income before taxes 7,180 Income taxes 2,872 Net income $ 4,308 RNA INC. BALANCE SHEET AS OF NOVEMBER 30 (IN THOUSANDS) 2015 2014 Cash $ 340 $ 440 Short-term investments (at cost) 240 140 Accounts receivable (net) 3,140 2,840 Inventory 5,940 5,340 Total current assets 9,660 8,760 Property, plant, & equipment (net) 7,040 6,940 Total assets $ 16,700 $ 15,700 Accounts payable $ 3,640 $ 3,340 Income taxes payable 840 740 Accrued expenses 1,640 1,340 Total current liabilities 6,120 5,420 Long-term debt 1,940 1,740 Total liabilities 8,060 7,160 Common stock ($1 par value) 2,640 2,640 Paid-in capital in excess of par 940 940 Retained earnings 5,060 4,960 Total stockholders equity 8,640 8,540 Total liabilities and stockholders equity $ 16,700 $ 15,700 SELECTED FINANCIAL RATIOS RNA INC. Current Industry Average 2014 2013 Current ratio 1.62 1.63 1.57 Acid-test ratio 0.63 0.62 0.67 Times interest earned 8.49 8.44 8.39 Profit margin on sales 13.14% 12.04% 12.94% Asset turnover 1.78 1.77 1.78 Inventory turnover 3.11 3.15 3.12 (a) Calculate a new set of ratios for the fiscal year 2015 for RNA based on the financial statements presented. (Round answers to 2 decimal places, e.g. 52.75.) Current ratio : 1 Acid-test ratio : 1 Times interest earned Profit margin on sales % Asset turnover times Inventory turnover times