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The condensed financial statements of Ness Company for the years 2019 and 2020 are presented below. Ness Company Balance Sheets December 31 (in thousands) 2020
The condensed financial statements of Ness Company for the years 2019 and 2020 are presented below.
Ness Company Balance Sheets December 31 (in thousands) | ||||
2020 | 2019 | |||
Current assets | ||||
Cash and cash equivalents | $330 | $380 | ||
Accounts receivable (net) | 490 | 380 | ||
Inventory | 500 | 420 | ||
Prepaid expenses | 130 | 160 | ||
Total current assets | 1,450 | 1,340 | ||
Property, plant, and equipment (net) | 450 | 370 | ||
Investments | 1 | 10 | ||
Intangibles and other assets | 550 | 480 | ||
Total assets | $2,451 | $2,200 | ||
Current liabilities | $860 | $800 | ||
Long-term liabilities | 571 | 380 | ||
Stockholders equitycommon | 1,020 | 1,020 | ||
Total liabilities and stockholders equity | $2,451 | $2,200 |
Ness Company Income Statements For the Years Ended December 31 (in thousands) | ||||
2020 | 2019 | |||
Sales revenue | $3,830 | $3,440 | ||
Costs and expenses | ||||
Cost of goods sold | 920 | 910 | ||
Selling & administrative expenses | 2,360 | 2,310 | ||
Interest expense | 10 | 20 | ||
Total costs and expenses | 3,290 | 3,240 | ||
Income before income taxes | 540 | 200 | ||
Income tax expense | 216 | 80 | ||
Net income | $324 | $120 |
Compute the following ratios for 2020 and 2019. Inventory on December 31, 2018, was $320. Assets on December 31, 2018, were $1,900. Equity on December 31, 2018, was $870. (Round current ratio and inventory turnover to 2 decimal places, e.g. 15.25. Round other answers to 1 decimal place, e.g. 15.2 or 15.2%.)
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