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The condensed financial statements of Murawski Company for the years 2014 and 2015 are presented below. MURAWSKI COMPANY Balance Sheets December 31 2015 2014 Current

The condensed financial statements of Murawski Company for the years 2014 and 2015 are presented below.

MURAWSKI COMPANY Balance Sheets December 31

2015

2014

Current assets
Cash and cash equivalents $ 364 $ 367
Accounts receivable (net) 387 466
Inventory 373 446
Prepaid expenses 140 131
Total current assets 1,264 1,410
Property, plant, and equipment 363 434
Investments 11 11
Intangibles and other assets 530 545
Total assets $2,168 $2,400
Current liabilities $ 801 $ 881
Long-term liabilities 355 406
Stockholders equitycommon 1,012 1,113
Total liabilities and stockholders equity $2,168 $2,400

MURAWSKI COMPANY Income Statements For the Years Ended December 31

2015

2014

Sales revenue $3,921 $3,800
Costs and expenses
Cost of goods sold 887 969
Selling & administrative expenses 2,319 2,384
Interest expense 25 22
Total costs and expenses 3,231 3,375
Income before income taxes 690 425
Income tax expense 139 145
Net income $ 551 $ 280

Compute the following ratios for 2015 and 2014. (Round answers to 1 decimal place, e.g. 1.6 or 1.6%.)

(a) Current ratio.
(b) Inventory turnover. (Inventory on 12/31/13 was $335.)
(c) Profit margin.
(d) Return on assets. (Assets on 12/31/13 were $1,900.)
(e) Return on common stockholders equity. (Equity on 12/31/13 was $903.)
(f) Debt to assets ratio.
(g) Times interest earned.

2015

2014

Current ratio

:1

:1
Inventory turnover

times

times
Profit margin ratio

%

%
Return on assets

%

%
Return on common stockholders equity

%

%
Debt to assets ratio

%

%
Times interest earned

times

times

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