The condensed financial statements of Carla Vista Co. for the years 2016 and 2017 are presented below. 2016 $360 520 CARLA VISTA CO. Balance Sheets December 31 (in thousands) 2017 Current assets Cash and cash equivalents $330 Accounts receivable (net) 590 Inventory 640 Prepaid expenses 130 Total current assets 1,690 Property, plant, and equipment (net) 410 Investments 130 Intangibles and other assets 530 570 160 1,610 380 130 Total assets $2,760 $2,630 $910 Current liabilities Long-term liabilities Stockholders' equity-common $940 660 1,160 560 1,160 Total liabilities and stockholders' equity $2,760 $2,630 CARLA VISTA CO. Income Statements For the Year Ended December 31 (in thousands) 2017 2016 Sales revenue $3,980 $3,640 Costs and expenses Cost of goods sold 1,090 1,010 Selling & administrative expenses 2,400 2,330 Interest expense 20 Total costs and expenses 3,500 3,360 Income before income taxes 480 280 Income tax expense 192 112 Net income $ 288 $ 168 10 Compute the following ratios for 2017 and 2016. (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, 2015, was $360.) (c) Profit margin. (d) Return on assets. (Assets on December 31, 2015, were $2,450.) (e) Return on common stockholders' equity. (Equity on December 31, 2015, was $970.) (f) Debt to assets ratio. (g) Times interest earned. 2017 2016 Current ratio. 1.80 1.77:1 Inventory turnover. 1.80 1.67 Profit margin. 7.2 % Return on assets. 5.3 Return on common stockholders' 13.0 Debt to assets ratio. 59.0 55.9% Times interest earned. 14|| times