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The condensed financial statements of Waterway Company for the years 2021 and 2022 are presented as follows. (Amounts in thousands.) WATERWAY COMPANY Balance Sheets December

The condensed financial statements of Waterway Company for the years 2021 and 2022 are presented as follows. (Amounts in thousands.)

WATERWAY COMPANY Balance Sheets December 31

2022

2021

Current assets

Cash and cash equivalents

$ 354 $ 357

Accounts receivable (net)

402 468

Inventory

384 432

Prepaid expenses

172 106

Total current assets

1,312 1,363

Investments

13 15

Property, plant, and equipment (net)

390 426

Intangibles and other assets

480 504

Total assets

$2,195 $2,308

Current liabilities

$ 808 $ 890

Long-term liabilities

392 426

Stockholders equitycommon

995 992

Total liabilities and stockholders equity

$2,195 $2,308

WATERWAY COMPANY Income Statements For the Years Ended December 31

2022

2021

Net sales

$3,900 $3,790

Expenses

Cost of goods sold

890 944

Selling and administrative expenses

2,305 2,392

Interest expense

24 23

Total expenses

3,219 3,359

Income before income taxes

681 431

Income tax expense

150 86

Net income

$ 531 $ 345

Compute the following ratios for 2022 and 2021. (Round current ratio and invertory turnover ratio to 2 decimal places, e.g. 1.62 or 1.62% and all other answers to 1 decimal place, e.g. 1.6 or 1.6%.)

(a) Current ratio.
(b) Inventory turnover. (Inventory on 12/31/20 was $344.)
(c) Profit margin.
(d) Return on assets. (Assets on 12/31/20 were $1,876.)
(e) Return on common stockholders equity. (Stockholders' equitycommon on 12/31/20 was $884.)
(f) Debt to assets ratio.
(g) Times interest earned.

2022

2021

(a)

Current ratio

enter ratio rounded to 2 decimal places :1 enter ratio rounded to 2 decimal places :1

(b)

Inventory turnover

enter a number of times rounded to 2 decimal places times enter a number of times rounded to 2 decimal places times

(c)

Profit margin

enter percentages rounded to 1 decimal place % enter percentages rounded to 1 decimal place %

(d)

Return on assets

enter percentages rounded to 1 decimal place % enter percentages rounded to 1 decimal place %

(e)

Return on common stockholders equity

enter percentages rounded to 1 decimal place % enter percentages rounded to 1 decimal place %

(f)

Debt to assets ratio

enter percentages rounded to 1 decimal place % enter percentages rounded to 1 decimal place %

(g)

Times interest earned

enter a number of times rounded to 1 decimal place times enter a number of times rounded to 1 decimal place times

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