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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)

580

510

Inventory

550

480

Prepaid expenses

130

160

Total current assets

1,590

1,510

Property, plant, and equipment (net)

410

380

Investments

120

120

Intangibles and other assets

530

510

Total assets

$2,650

$2,520

Current liabilities

$930

$900

Long-term liabilities

570

470

Stockholders equitycommon

1,150

1,150

Total liabilities and stockholders equity

$2,650

$2,520

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

2017

2016

Sales revenue

$3,890

$3,550

Costs and expenses
Cost of goods sold

1,080

1,000

Selling & administrative expenses

2,400

2,330

Interest expense

10

20

Total costs and expenses

3,490

3,350

Income before income taxes

400

200

Income tax expense

160

80

Net income

$ 240

$ 120

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 $410.)
(c) Profit margin.
(d) Return on assets. (Assets on December 31, 2015, were $2,720.)
(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

:1
Inventory turnover.

Profit margin. %

%
Return on assets.

%

%
Return on common stockholders equity.

%

%
Debt to assets ratio.

%

%
Times interest earned.

times times

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