Question
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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