Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The condensed financial statements of Sunland Commany for the years 2021 and 2022 are presented as follows. (Amounts in thousands) Current assets SUNLAND COMPANY Balance

The condensed financial statements of Sunland Commany for the years 2021 and 2022 are presented as follows. (Amounts in thousands) Current assets SUNLAND COMPANY Balance Sheets December 31 2022 2021 Cash and cash equivalents Accounts receivable (ne) Inventory Prepaid expenses Total current assets. Investments Property, plan, and equipment (net) Intangibles and other assets Total assets Current liabilities Long term liabilities Stockholders' equity-common Total liabilities and stockholders' equity Net sales Experie SUNLAND COMPANY Income Statements For the Years Ended December 31 $360 150 480 122 1/112 13 418 504 $2.317 $884 420 1.013 $2,347 2022 2021 $3,910 $3.820 Cost of goods sold 860 990 Selling and administrative expenses 2.340 2410 Interest expense 21 24 Total expenses 3,221 3,424 Income before income taxes 469 396 Income tax expense 176 83 Nel income $513 $313 Compute the following ratios for 2022 and 2021. (Round current ratio and invertory turnover ratio to 2 decimal places, eg 1.62 or 1.62% and all other answers to 1 decimal place, eg. 1.6 or 1.6%) (a) Current ratio (b) Inventory turnover. (Inventory on 12/31/20 was $311) (c) Pront margin. (d) (el (0 Return on assets Assets on 12/31/20 were $1.872.1 Return on common stockholders' equity. (Stockholders equity-common on 12/31/20 was $898). Debi to assets ratio. s Times interest eamed. (a) Current ratio (b) Inventory turnover (c) Profit margin (d) Return on asels (el fl 2022 1 Limes % 2021 :1 times % % % Return on common stockholders' equity % 56 Debt to assets ratio Vel Times interest eemed % times 50 times

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions