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The condensed financial statements of Ivanhoe Company for the years 2 0 2 6 and 2 0 2 7 are presented as follows. ( Amounts

The condensed financial statements of Ivanhoe Company for the years 2026 and 2027 are presented as follows. (Amounts in thousands.)
IVANHOE COMPANY
Balance Sheets
December 31,2027
Current assets
Cash and cash equivalents: $330
Accounts receivable (net): 550
Inventory: 530
Prepaid expenses: 120
Total current assets: 1,530
Investments: 90
Property, plant, and equipment (net): 420
Intangibles and other assets: 530
Total assets: $2,570
Current liabilities: $980
Long-term liabilities: 480
Stockholders' equity-common: 1,110
Total liabilities and stockholders' equity: $2,570
IVANHOE COMPANY
Balance Sheets
December 31,2026
Current assets
Cash and cash equivalents: $360
Accounts receivable (net): 480
Inventory: 460
Prepaid expenses: 160
Total current assets: 1,460
Investments: 90
Property, plant, and equipment (net): 380
Intangibles and other assets: 510
Total assets: $2.440
Current liabilities: $870
Long-term liabilities: 450
Stockholders' equity-common: 1,120
Total liabilities and stockholders' equity: $2,440
IVANHOE COMPANY
Income Statements
For the Years Ended December 31,2027
Net sales: $3,870
Expenses
Cost of goods sold: 1,035
Selling and administrative expenses: 2,400
Interest expense: 25
Total expenses: 3,460
Income before income taxes: 410
Income tax expense: 123
Net income: $287
IVANHOE COMPANY
Income Statements
For the Years Ended December 31,2026
Net sales: 3,530
Expenses
Cost of goods sold: 970
Selling and administrative expenses: 2,330
Interest expense: 20
Total expenses: 3,320
Income before income taxes: 210
Income tax expense: 63
Net income: $147
Compute the following ratios for 2027 and 2026.(Round current ratio and inventory turnover to 2 decimal places, eg.1.83 and all other answers to 1 decimal place, e.g.1.8 or 12.696.)
(a) Current ratio.
(b) Inventory turnover. (Inventory on 12/31/25 was $400.)
(c) Profit margin.
(d) Return on assets. (Assets on 12/31/25 were $1,980.)
(e) Return on common stockholders' equity. (Stockholders' equitycommon on 12/31/25 was $970.)
(f) Debt to assets ratio.
(g) Times interest earned.
2027
Current ratio: 1.56 :1
Inventory turnover: ___ times
Profit margin: 7.4%
Return on assets: ___%
Return on common stockholders' equity: ___%
Debt to assets ratio: ___%
Times interest earned: 17.4 times
2026
Current ratio: 1.68 :1
Inventory turnover: ___ times
Profit margin: 4.2%
Return on assets: ___%
Return on common stockholders' equity: ___%
Debt to assets ratio: ___%
Times interest earned: 11.5 times

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