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The condensed financial statements of Gobbledygook Inc. for the years 2013 and 2014 are as listed. GOBBLEDYGOOK INC. Balance Sheets December 31 (in thousands) 2014

The condensed financial statements of Gobbledygook Inc. for the years 2013 and 2014 are as listed.

GOBBLEDYGOOK INC.

Balance Sheets

December 31 (in thousands)

2014

2013

Current assets

Cash and cash equivalents

$316

$378

Accounts receivable (net)

660

590

Inventory

510

440

Prepaid expenses

130

160

Total current assets

1,616

1,568

Investments

200

200

Property, plant, and equipment (net)

424

380

Intangibles and other assets

530

492

Total assets

$2,770

$2,640

Current liabilities

$1,010

$980

Long-term liabilities

530

430

Stockholders equitycommon

1,230

1,230

Total liabilities and stockholders equity

$2,770

$2,640

GOBBLEDYGOOK INC.

Income Statements

For the Year Ended December 31 (in thousands)

2014

2013

Sales revenue

$3,850

$3,510

Costs and expenses

Cost of goods sold

1,159

1,092

Selling & administrative expenses

2,400

2,330

Interest expense

10

20

Total costs and expenses

3,569

3,442

Income before income taxes

281

68

Income tax expense

112

27

Net income

$ 169

$ 41

Calculate the following ratios for 2014 and 2013. (Round current ratio and inventory turnover to 2 decimal places.)

(a)

Current ratio.

(b)

Inventory turnover. (Inventory on December 31, 2012, was $400.)

(c)

Profit margin.

(d)

Return on assets. (Assets on December 31, 2012, were $2,300.)

(e)

Return on common stockholders equity. (Equity on December 31, 2012, was $950.)

(f)

Debt to assets ratio.

(g)

Times interest earned.

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