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The condensed financial statements of Wildhorse Co. for the years 2021 and 2022 are presented as follows. (Amounts in thousands.) WILDHORSE CO. Balance Sheets December
The condensed financial statements of Wildhorse Co. for the years 2021 and 2022 are presented as follows. (Amounts in thousands.) WILDHORSE CO. Balance Sheets December 31 2022 2021 Current assets Cash and cash equivalents $330 $360 Accounts receivable (net) 510 440 Inventory 540 470 Prepaid expenses 120 160 Total current assets 1,500 1,430 Investments 50 50 50 Property, plant, and equipment (net) 420 380 Intangibles and other assets 530 510 Total assets $2,500 $2,370 Current liabilities $940 $830 Long-term liabilities 490 460 Stockholders' equity-common 1,070 1,080 Total liabilities and stockholders' equity $2,500 $2,370 WILDHORSE CO. Income Statements For the Year Ended December 31 2022 2021 Sales revenue $3,880 $3.540 Costs and expenses Cost of goods sold 995 930 Selling & administrative expenses 2.400 2,330 Interest expense 25 20 Total costs and expenses 3,420 3,280 Income before income taxes 460 260 Income tax expense 138 78 Net income $ 322 $ 182 Compute the following ratios for 2022 and 2021. (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 12/31/20, was $370.) (c) Profit margin. (d) Return on assets. Assets on 12/31/20, were $2,330.) (e) Return on common stockholders' equity. (Stockholders' equity on 12/31/20, was $950.) (f) Debt to assets ratio. Times interest earned. 2022 2021 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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