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The condensed financial statements of Carla Vista Co. for the years 2019 and 2020 are presented below. CARLA VISTA CO. Balance Sheets December 31 (in
The condensed financial statements of Carla Vista Co. for the years 2019 and 2020 are presented below. CARLA VISTA CO. Balance Sheets December 31 (in thousands) 2020 2019 Current assets Cash and cash equivalents Accounts receivable (net) $330 590 640 130 $360 520 570 160 Inventory Prepaid expenses Total current assets 1,690 1.610 Property, plant, and equipment (net) 410 380 Investments 130 530 130 510 Intangibles and other assets Total assets $2,760 $2,630 Current liabilities $940 $910 Long-term liabilities Stockholders' equity-common 660 560 1,160 1.160 $2,760 $2,630 Total liabilities and stockholders' equity CARLA VISTA CO. Income Statements For the Year Ended December 31 (in thousands) 2020 2019 Sales revenue $3,980 $3,640 Costs and expenses Cost of goods sold Selling & administrative expenses Interest expense 1,090 2,400 10 3.500 480 1010 2,330 20 3.360 280 Total costs and expenses Income before income taxes Income tax expense 192 112 Net income $ 288 $ 168 Compute the following ratios for 2020 and 2019. (Round current ratio and inventory turnover to 2 decimal places, e.g 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%.) (a) Current ratio. (b) Inventory turnover. (Inventory on December 31, 2018, was $360.) (c) Profit margin. (d) Return on assets. (Assets on December 31, 2018, were $2,450.) (e) Return on common stockholders' equity. (Equity on December 31, 2018, was $970.) (f) Debt to assets ratio. (g) Times interest earned. 2020 2019 (a) Current ratio. (b) Inventory turnover. (c) Profit margin. (d) Return on assets. (e) Return on common stockholders' equity. (f) Debt to assets ratio. (8) Times interest earned. times times
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