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The condensed financial statements of Sheridan Company for the years 2016 and 2017 are presented below. SHERIDAN COMPANY Balance Sheets December 31 (in thousands) 2017

The condensed financial statements of Sheridan Company for the years 2016 and 2017 are presented below.

SHERIDAN COMPANY Balance Sheets December 31 (in thousands)

2017

2016

Current assets
Cash and cash equivalents

$330

$360

Accounts receivable (net)

580

510

Inventory

490

420

Prepaid expenses

130

160

Total current assets

1,530

1,450

Property, plant, and equipment (net)

410

380

Investments

120

120

Intangibles and other assets

530

510

Total assets

$2,590

$2,460

Current liabilities

$930

$900

Long-term liabilities

510

410

Stockholders equitycommon

1,150

1,150

Total liabilities and stockholders equity

$2,590

$2,460

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

2017

2016

Sales revenue

$3,830

$3,490

Costs and expenses
Cost of goods sold

1,080

1,000

Selling & administrative expenses

2,400

2,330

Interest expense

10

20

Total costs and expenses

3,490

3,350

Income before income taxes

340

140

Income tax expense

136

56

Net income

$ 204

$ 84

Compute the following ratios for 2017 and 2016. (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 $390.)
(c) Profit margin.
(d) Return on assets. (Assets on December 31, 2015, were $2,430.)
(e) Return on common stockholders equity. (Equity on December 31, 2015, was $930.)
(f) Debt to assets ratio.
(g) Times interest earned.

2017

2016

Current ratio. :1 :1
Inventory turnover.
Profit margin. % %
Return on assets. % %
Return on common stockholders equity. % %
Debt to assets ratio. % %
Times interest earned. times times

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