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The condensed financial statements of Ness Company for the years 2018 and 2019 are presented below. NESS COMPANY Balance Sheets December 31 (in thousands) 2019

The condensed financial statements of Ness Company for the years 2018 and 2019 are presented below.

NESS COMPANY Balance Sheets December 31 (in thousands)

2019

2018

Current assets
Cash and cash equivalents

$330

$360

Accounts receivable (net)

470

400

Inventory

460

390

Prepaid expenses

130

160

Total current assets

1,390

1,310

Property, plant, and equipment (net)

410

380

Investments

10

10

Intangibles and other assets

530

510

Total assets

$2,340

$2,210

Current liabilities

$820

$790

Long-term liabilities

480

380

Stockholders equitycommon

1,040

1,040

Total liabilities and stockholders equity

$2,340

$2,210

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

2019

2018

Sales revenue

$3,800

$3,460

Costs and expenses
Cost of goods sold

970

890

Selling & administrative expenses

2,400

2,330

Interest expense

10

20

Total costs and expenses

3,380

3,240

Income before income taxes

420

220

Income tax expense

168

88

Net income

$ 252

$ 132

Compute the following ratios for 2019 and 2018. (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 $340.)
(c) Profit margin.
(d) Return on assets. (Assets on December 31, 2015, were $1,900.)
(e) Return on common stockholders equity. (Equity on December 31, 2015, was $900.)
(f) Debt to assets ratio.
(g) Times interest earned.

2019

2018

(a) Current ratio. :1 :1
(b) Inventory turnover.
(c) Profit margin. % %
(d) Return on assets. % %
(e) Return on common stockholders equity. % %
(f) Debt to assets ratio. % %
(g) Times interest earned. times times
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