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The condensed financial statements of Ivanhoe Company for the years 2016 and 2017 are presented below. IVANHOE COMPANY Balance Sheets December 31 (in thousands) 2017

The condensed financial statements of Ivanhoe Company for the years 2016 and 2017 are presented below.

IVANHOE COMPANY Balance Sheets December 31 (in thousands)

2017

2016

Current assets
Cash and cash equivalents

$330

$360

Accounts receivable (net)

630

560

Inventory

600

530

Prepaid expenses

130

160

Total current assets

1,690

1,610

Property, plant, and equipment (net)

410

380

Investments

170

170

Intangibles and other assets

530

510

Total assets

$2,800

$2,670

Current liabilities

$980

$950

Long-term liabilities

620

520

Stockholders equitycommon

1,200

1,200

Total liabilities and stockholders equity

$2,800

$2,670

IVANHOE COMPANY Income Statements For the Year Ended December 31 (in thousands)

2017

2016

Sales revenue

$3,940 (2017)

$3,600 (2016)

Costs and expenses Cost of goods sold

1,130 (2017)

1,050 (2016)

Selling & administrative expenses

2,400 (2017)

2,330 (2016)

Interest expense

10 (2017)

20 (2016)

Total costs and expenses

3,540 (2017)

3,400 (2016)

Income before income taxes

400 (2017)

200 (2016)

Income tax expense

160 (2017)

80 (2016)

Net income

$ 240 (2017)

$ 120 (2016)

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 $370.)
(c) Profit margin.
(d) Return on assets. (Assets on December 31, 2015, were $1,980.)
(e) Return on common stockholders equity. (Equity on December 31, 2015, was $970.)
(f) Debt to assets ratio.
(g) Times interest earned.

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