The condensed financial statements of Sunland Company for the years 2021 and 2022 are presented as follows. (Amounts in thousands.) SUNLAND COMPANY Balance Sheets December 31 2022 2021 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 500 430 Inventory 520 450 Prepaid expenses 120 160 Total current assets 1.470 1,400 Investments 40 40 Property, plant, and equipment (net) 420 380 Intangibles and other assets 530 510 Total assets $2,460 $2.330 Current liabilities $930 $820 Long-term liabilities 470 440 Stockholders' equity-common 1,060 1,070 Total liabilities and stockholders' equity $2.460 $2.330 SUNLAND COMPANY Income Statements For the Year Ended December 31 2022 2021 Sales revenue $3,860 $3,520 Costs and expenses Cost of goods sold 985 920 Selling & administrative expenses 2,400 2,330 Interest expense 25 20 Total costs and expenses 3,410 3,270 Income before income taxes 450 250 Income tax expense 135 75 Net income $ 315 $ 175 Compute the following ratios for 2022 and 2021. (Round current ratio and inventory turnover to 2 decimal places, eg. 1.83 and all other answers to 1 decimal place, eg. 1.8 or 12.6%) (a) Current ratio. Inventory turnover. (Inventory on 12/31/20, was $350.) (b) (c) Profit margin: (d) le) Return on assets. (Assets on 12/31/20, were $2.910.) Return on common stockholders' equity. (Stockholders' equity on 12/31/20, was $990.) Debt to assets ratio (8 Times interest earned. (b) Inventory turnover. (Inventory on 12/31/20, was $350.) (c) Profit margin. (d) le) Return on assets. (Assets on 12/31/20, were $2.910.) Return on common stockholders' equity. (Stockholders' equity on 12/31/20, was $990.) Debt to assets ratio. Times interest earned () (g) 2022 2021 Current ratio. :1 :1 1 Inventory turnover. Profit margin. % % Return on assets, % % % %6 Return on common stockholders' equity % Debt to assets ratio. 90 Times interest earned. times times

Answer rating: 100% (QA)

The Answer is in the image, click to view ... View the full answer