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) Interest income $30,430 430 30,860 Total revenue Costs and expenses 17,530 3,480 1,820 830 23,660 7,200 2,880 $4,320 Cost of goods sold Selling and administrative expenses Depreciation and amortization expense Interest expense Total costs and expenses Income before taxes Income taxes Net income