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The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented as follows. (Amounts in thousands.) MURAWSKI COMPANY Balance Sheets December
The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented as follows. (Amounts in thousands.) MURAWSKI COMPANY Balance Sheets December 31 2020 2019 5330 470 460 120 1,380 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments Property, plant, and equipment Intangibles and other assets Total assets Current liabilities Long-term liabilities Stockholders' equity-common Total liabilities and stockholders' equity 5360 400 390 160 1,310 10 380 510 $2,210 5790 420 530 52,340 $900 410 1,030 $2.340 380 1,040 52.210 2019 $3,460 MURAWSKI COMPANY Income Statements For the Years Ended December 31 2020 Sales revenue $3,800 Costs and expenses Cost of goods sold 955 Selling & administrative expenses 2,400 Interest expense 25 Total costs and expenses 3,380 Income before income taxes 420 Income tax expense 126 Net income $ 294 890 2,330 20 220 Compute the following ratios for 2020 and 2019. (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 12/31/18, was $340.) (c) Profit margin. (d) Return on assets. (Assets on 12/31/18, were $1,900.) (e) Return on common stockholders' equity. (Stockholders' equity on 12/31/18, was $900.) (f) Debt to assets ratio. (9) Times interest earned
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