X Balance sheet 2016 Freedom Corporation Balance Sheets December 31, 2017 and 2016 (amounts in thousands) 2017 Assets Current assets: Cash $ 2,730 $ Accounts receivables 2,400 Inventory 1,900 800 Other current assets 2,400 2,000 1,500 2,150 1,900 800 1,500 2,150 Inventory Other current assets Total current assets Other assets $ 7,830 $ 21,500 8,050 19,000 $ 27,050 Total assets 29,330 $ $ Liabilities Total current liabilities Long-term liabilities Total liabilities 9,000 $ 2,330 7,000 4,050 $ 11,330 $ 11,050 $ 29,330 $ 27,050 Total assets Liabilities Total current liabilities Long-term liabilities Total liabilities 9,000 $ 2,330 7,000 4,050 11,330 $ 11,050 Stockholders' equity Total common stockholders' equity 18,000 16,000 $ Total liabilities and equity 29,330 $ 27,050 0 Income statement X (amounts in thousands) 2017 $ 16,060 5,780 $ 10,280 2,630 Sales revenue Less: Cost of goods sold Gross profit Less: Operating expenses Operating income Less: Interest expense Income before income taxes Less: Income tax expense Net income $ 7,650 300 $ 7,350 4,800 $ 2,550 i Requirement X Calculate the following ratios for 2017 and interpret the results: a. Inventory turnover b. Days' sales in receivables c. Acid-test ratio d. Times-interest-earned e. Gross profit percentage f. Operating income percentage g. Return on stockholders' equity h. Earnings per share i. Pricelearnings ratio a. Inventory turnover Enter the formula on the first line, then calculate the inventory turnover on the next line. (Enter amounts in thousands as provided to you in the problem statement. Round your answer to one decimal place.) / Cost of goods sold 5,780 Average inventory 1,700 Inventory turnover 3.4 $ / $ Freedom times per year. To determine if this seems reasonable, a comparison with ary to reach a better conclusion. purchases its inventory sells its inventory Choose from any wards and then click Check Answer. ? a. Inventory turnover Enter the formula on the first line, then calculate the inventory turnover on the next line. (Enter amounts in thousands as provided to you in the problem statement. Round your answer to one decimal place.) Cost of goods sold 1 = Average inventory 1,700 Inventory turnover 3.4 5,780 Freedom times per year. To determine if this seems reasonable, a comparison with would be necessary to reach a better conclusion. in the input fields and then click Check Answer. ? industry standards the acid-test ratio the price/earnings ratio the times-interest-earned ratio Clear All Check