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The condensed financial statements of Cullumber Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.) Compute the following ratios for
The condensed financial statements of Cullumber Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.)
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 12/31/15, was $360.) | |
(c) | Profit margin. | |
(d) | Return on assets. (Assets on 12/31/15, were $2,630.) | |
(e) | Return on common stockholders equity. (Stockholders equity on 12/31/15, was $990.) | |
(f) | Debt to assets ratio. | |
(g) | Times interest earned. |
CULLUMBER COMPANY Balance Sheets December 31 2017 2016 Current assets $360 Cash and cash equivalents $330 600 Accounts receivable (net) 530 Inventory 500 430 120 160 Prepaid expenses Total current assets 1,550 1,480 Investments 140 140 Property, plant, and equipment (net) 420 380 530 510 Intangibles and other assets $2,640 $2,510 Total assets $920 Current liabilities $1,030 Long-term liabilities 450 420 1,160 1,170 Stockholders' equity-common $2,640 $2,510 Total liabilities and stockholders' equity CULLUMBER COMPANY Income Statements For the Year Ended December 31 2017 2016 Sales revenue $3,840 $3,500 Costs and expenses Cost of goods sold 1,085 1,020 Selling & administrative expenses 2,400 2,330 20 Interest expense 25 Total costs and expenses 3,510 3,370 Income before income taxes 330 130 99 39 Income tax expense $231 91 Net income
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