The condensed financial statements of Pharoah Company for the years 2016 and 2017 are presented as follows. (Amounts in thousands.) PHAROAH COMPANY Balance Sheets December 31 2017 2016 $330 $360 590 520 660 590 120 160 1.700 1.630 130 130 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Investments Property, plant, and equipment (net) Intangibles and other assets Total assets Current liabilities Long-term liabilities Stockholders' equity-common Total liabilities and stockholders' equity 420 380 510 530 $2.780 $2,650 $1,020 $910 610 580 1.150 1.160 $2.780 $2,650 PHAROAH COMPANY Income Statements For the Year Ended December 31 2017 2016 $4,000 $3,660 1,075 1,010 2,400 2330 Sales revenue Costs and expenses Cost of goods sold Selling & administrative expenses Interest expense Total costs and expenses Income before income taxes Income tax expense Net income 25 20 3,500 3.360 500 300 90 150 $ 350 $ 210 Compute the following ratios for 2017 and 2016. (Round current ratio and Inventory turnover to 2 decimal places, es, 1.83 and all other answers to 1 decimal place, e.g. 1.8 or 12.6%) (a) (b) (c) (d) Current ratio. Inventory turnover (Inventory on 12/31/15, was $390.) Profit margin Return on assets. (Assets on 12/31/15, were $2,390.) Return on common stockholders' equity. (Stockholders' equity on 12/31/15, was $950.) Debt to assets ratio. Times interest earned (e) ( (8) 2017 2016 :1 :1 Current ratio. Inventory turnover OR Profit margin Return on assets. % Return on common stockholders' equity % % Debt to assets ratio % % Times interest earned times times