Answered step by step
Verified Expert Solution
Question
1 Approved Answer
would like help wit understanding what numbers are used for the problems. The condensed financial statements of Ness Company for the years 2019 and 2020
would like help wit understanding what numbers are used for the problems. The condensed financial statements of Ness Company for the years 2019 and 2020 are presented Ness Company Balance Sheets December 31 (in thousands) 2020 2019 $330 $390 430 440 440 400 150 180 1,400 Current assets Cash and cash equivalents Accounts receivable (net) Inventory Prepaid expenses Total current assets Property, plant, and equipment (net) Investments Intangibles and other assets Total assets Current liabilities Long-term liabilities Stockholders' equity--common Total liabilities and stockholders' equity 1,360 430 400 1 10 530 560 $2,321 $820 $2,370 $780 600 511 990 990 $2,321 $2,370 Ness Company Income Statements For the Years Ended December 31 (in thousands) 2020 2019 Sales revenue $3,880 $3,400 Costs and expenses Cost of goods sold 970 880 Selling administrative expenses 2,370 2,350 Interest expense 20 For the Years Ended December 31 (in thousands) 2020 2019 $3,880 $3,400 970 880 2,370 Sales revenue Costs and expenses Cost of goods sold Selling & administrative expenses Interest expense Total costs and expenses Income before income taxes Income tax expense Net income 2,350 20 10 3,350 3,250 530 150 212 60 $318 $90 Compute the following ratios for 2020 and 2019. Inventory on December 31, 2018, was $360 turnover to 2 decimal places, e.g. 15.25. Round other answers to 1 decimal place, e. 2020 2019 (a) Current ratio :1 :1 (b) Inventory turnover times times (c) Profit margin % % (d) Return on assets % % (e) Return on common stockholders' equity 96 % () Debt to assets ratio 96 % (9) Times interest earned times times Click if you would like to Show Work for this question: Open Show Work
would like help wit understanding what numbers are used for the problems.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started